Your monthly Social Security retirement benefit is calculated using your highest 35 years of inflation-adjusted earnings, a specific formula, and your age when you begin receiving benefits.
The Social Security Administration (SSA) determines your retirement benefit by first calculating your average indexed monthly earnings (AIME) over your highest 35 years of earnings. These earnings are adjusted for inflation to reflect their value in today's dollars. Then, a formula is applied to your AIME to arrive at your primary insurance amount (PIA), which is the benefit you would receive at your full retirement age. Finally, your benefit amount is adjusted based on whether you start receiving benefits before, at, or after your full retirement age.
This information provides a general overview of how Social Security retirement benefits are calculated and does not constitute financial advice.
Can my spouse estimate their Social Security benefits based on my record?
Yes, a spouse can be eligible to receive benefits based on your earnings record, even if they have never worked or have a lower earnings history themselves. This is known as a spousal benefit. The maximum spousal benefit is typically 50% of your primary insurance amount (PIA), and it is available to a spouse who claims benefits at their full retirement age. If the spouse claims spousal benefits before their full retirement age, the amount will be permanently reduced. Your spouse can get an estimate of their potential spousal benefit by checking their own 'my Social Security' account or by contacting the Social Security Administration directly.