ssa-gov/www.ssa.gov/OACT/ProgData/retirebenefit2.html

193 lines
18 KiB
HTML

<!DOCTYPE html>
<html class="no-js" lang="en">
<head>
<!-- REQUIRED META INFORMATION -->
<meta charset="UTF-8" />
<meta http-equiv="X-UA-Compatible" content="IE=edge" />
<meta name="viewport" content="width=device-width, initial-scale=1" />
<meta name="msapplication-tap-highlight" content="no" />
<!-- PAGE TITLE -->
<title>Social Security Retirement Benefit Calculation</title>
<!-- PAGE META INFORMATION -->
<meta name="DCTERMS:coderOffice" content="OCACT" />
<meta name="DCTERMS:coder" content="jlkunkel" />
<meta name="DCTERMS:contentOffice" content="OCACT" />
<meta name="DCTERMS:contentOwner" content="KSutton" />
<meta name="description" content="Benefit Calculation Examples for Workers Retiring in 2025" />
<meta name="DCTERMS:dateCertified" content="2024-10-10" />
<meta name="DCTERMS:required" content="OMB:M-17-06:1" />
<!-- STYLES -->
<link rel="stylesheet" href="/framework/css/ssa.firefly.css" />
<style>
table {border-color:#ccddee;}
tr:nth-child(odd) {background-color:#ddeeff;}
th {background-color:#ffffff;}
tr {vertical-align:bottom; padding:0px; border-spacing:0px;}
</style>
<!-- SCRIPTS -->
<script src="/framework/js/ssa.firefly.head.js"></script>
<script>(window.BOOMR_mq=window.BOOMR_mq||[]).push(["addVar",{"rua.upush":"false","rua.cpush":"false","rua.upre":"false","rua.cpre":"false","rua.uprl":"false","rua.cprl":"false","rua.cprf":"false","rua.trans":"","rua.cook":"false","rua.ims":"false","rua.ufprl":"false","rua.cfprl":"false","rua.isuxp":"false","rua.texp":"norulematch","rua.ceh":"false","rua.ueh":"false","rua.ieh.st":"0"}]);</script>
<script>!function(e){var n="https://s.go-mpulse.net/boomerang/";if("False"=="True")e.BOOMR_config=e.BOOMR_config||{},e.BOOMR_config.PageParams=e.BOOMR_config.PageParams||{},e.BOOMR_config.PageParams.pci=!0,n="https://s2.go-mpulse.net/boomerang/";if(window.BOOMR_API_key="LERZW-HECFS-R8H4E-23UQ7-ERMQB",function(){function e(){if(!o){var e=document.createElement("script");e.id="boomr-scr-as",e.src=window.BOOMR.url,e.async=!0,i.parentNode.appendChild(e),o=!0}}function t(e){o=!0;var n,t,a,r,d=document,O=window;if(window.BOOMR.snippetMethod=e?"if":"i",t=function(e,n){var t=d.createElement("script");t.id=n||"boomr-if-as",t.src=window.BOOMR.url,BOOMR_lstart=(new Date).getTime(),e=e||d.body,e.appendChild(t)},!window.addEventListener&&window.attachEvent&&navigator.userAgent.match(/MSIE [67]\./))return window.BOOMR.snippetMethod="s",void t(i.parentNode,"boomr-async");a=document.createElement("IFRAME"),a.src="about:blank",a.title="",a.role="presentation",a.loading="eager",r=(a.frameElement||a).style,r.width=0,r.height=0,r.border=0,r.display="none",i.parentNode.appendChild(a);try{O=a.contentWindow,d=O.document.open()}catch(_){n=document.domain,a.src="javascript:var d=document.open();d.domain='"+n+"';void(0);",O=a.contentWindow,d=O.document.open()}if(n)d._boomrl=function(){this.domain=n,t()},d.write("<bo"+"dy onload='document._boomrl();'>");else if(O._boomrl=function(){t()},O.addEventListener)O.addEventListener("load",O._boomrl,!1);else if(O.attachEvent)O.attachEvent("onload",O._boomrl);d.close()}function a(e){window.BOOMR_onload=e&&e.timeStamp||(new Date).getTime()}if(!window.BOOMR||!window.BOOMR.version&&!window.BOOMR.snippetExecuted){window.BOOMR=window.BOOMR||{},window.BOOMR.snippetStart=(new Date).getTime(),window.BOOMR.snippetExecuted=!0,window.BOOMR.snippetVersion=12,window.BOOMR.url=n+"LERZW-HECFS-R8H4E-23UQ7-ERMQB";var i=document.currentScript||document.getElementsByTagName("script")[0],o=!1,r=document.createElement("link");if(r.relList&&"function"==typeof r.relList.supports&&r.relList.supports("preload")&&"as"in r)window.BOOMR.snippetMethod="p",r.href=window.BOOMR.url,r.rel="preload",r.as="script",r.addEventListener("load",e),r.addEventListener("error",function(){t(!0)}),setTimeout(function(){if(!o)t(!0)},3e3),BOOMR_lstart=(new Date).getTime(),i.parentNode.appendChild(r);else t(!1);if(window.addEventListener)window.addEventListener("load",a,!1);else if(window.attachEvent)window.attachEvent("onload",a)}}(),"".length>0)if(e&&"performance"in e&&e.performance&&"function"==typeof e.performance.setResourceTimingBufferSize)e.performance.setResourceTimingBufferSize();!function(){if(BOOMR=e.BOOMR||{},BOOMR.plugins=BOOMR.plugins||{},!BOOMR.plugins.AK){var n=""=="true"?1:0,t="",a="vht6pfix22vgcz6v47jq-f-014e74e59-clientnsv4-s.akamaihd.net",i="false"=="true"?2:1,o={"ak.v":"39","ak.cp":"1204614","ak.ai":parseInt("728289",10),"ak.ol":"0","ak.cr":3,"ak.ipv":4,"ak.proto":"http/1.1","ak.rid":"3129361","ak.r":35636,"ak.a2":n,"ak.m":"dsca","ak.n":"essl","ak.bpcip":"169.231.231.0","ak.cport":43778,"ak.gh":"23.214.170.93","ak.quicv":"","ak.tlsv":"tls1.3","ak.0rtt":"","ak.0rtt.ed":"","ak.csrc":"-","ak.acc":"bbr","ak.t":"1742071763","ak.ak":"hOBiQwZUYzCg5VSAfCLimQ==VYEBne80kRHCfjfyf+t1goSN396RAFuftwVLM5fTDx+uZWMSx29yEO/uBjRGl/E139N5K6g1Hm47lRC/gAKqtPv3G23SC3qUI0wTUeVxvZVzuAvGtdxu57kui4HYWW5hxH3cfTC6CrvzicjjRXLB2bdGkn9NeBAkcf3DH8aqvf2x6WC6faTXjMbWMpmU5b1IZ4lCoDOKIlvzT22IaG2icH7ttQB3nHAIKWgfJgCE3Bh4bIVYslJvOJsvZqoB0fzpUKTRiitJljkrFcdC3BLZuMvHsM1CjKoOsNC5Y+1qmHaOWMeYYry9BbwJ2NFCNzIdePpqmw6AVrMoWmie+UmYY0/wck1M5bA3VKgKhP8qoe5Imm9iI+vGDdLDEIFWysV9s5K5CnrEoFpGMVCQe2qzdg5WQQjIAxA4VdWckF9bjoY=","ak.pv":"98","ak.dpoabenc":"","ak.tf":i};if(""!==t)o["ak.ruds"]=t;var r={i:!1,av:function(n){var t="http.initiator";if(n&&(!n[t]||"spa_hard"===n[t]))o["ak.feo"]=void 0!==e.aFeoApplied?1:0,BOOMR.addVar(o)},rv:function(){var e=["ak.bpcip","ak.cport","ak.cr","ak.csrc","ak.gh","ak.ipv","ak.m","ak.n","ak.ol","ak.proto","ak.quicv","ak.tlsv","ak.0rtt","ak.0rtt.ed","ak.r","ak.acc","ak.t","ak.tf"];BOOMR.removeVar(e)}};BOOMR.plugins.AK={akVars:o,akDNSPreFetchDomain:a,init:function(){if(!r.i){var e=BOOMR.subscribe;e("before_beacon",r.av,null,null),e("onbeacon",r.rv,null,null),r.i=!0}return this},is_complete:function(){return!0}}}}()}(window);</script></head>
<body>
<!-- BANNER -->
<aside class="accessibility" id="accessibility"><a href="#content" id="skip-navigation">Skip to main content</a></aside>
<!-- WCMS SITE ALERT (EMERGENCY) -->
<div class="print-dn wcms" aria-label="Site Alert" style="background-color: #FFE396;">
<div class="fx mx-auto px3 py2" style="max-width: 75rem;">
<svg class="fx-none mr2 svg3" focusable="false" viewbox="0 0 20 20" aria-hidden="true">
<path fill="#FFFFFF" fill-rule="evenodd" stroke-width="0" d="M10.8,15h-1.7v-1.7h1.7v1.7ZM10.8,11.7h-1.7v-4.9h1.7v4.9Z" vector-effect="non-scaling-stroke"></path>
<path fill="#1C1D1F" fill-rule="evenodd" stroke-width="0" d="M.8,17.5h18.3L10,1.7.8,17.5ZM10.8,15h-1.7v-1.7h1.7v1.7ZM10.8,11.7h-1.7v-4.9h1.7v4.9h0Z" vector-effect="non-scaling-stroke"></path>
</svg>
<a class="cc" href="https://www.ssa.gov/manage-benefits/make-an-appointment"><u>If you need to visit an office, schedule an appointment first. Find out how.</u></a>
</div>
</div>
<!-- WCMS SITE ALERT (INFORMATION) -->
<div class="print-dn wcms" aria-label="Site Alert" style="background-color: #E7F6F8;">
<div class="fx mx-auto px3 py2" style="max-width: 75rem;">
<svg class="fx-none mr2 svg3" focusable="false" viewbox="0 0 20 20" aria-hidden="true">
<path fill="#1C1D1F" fill-rule="evenodd" stroke-width="0" d="M10,1.7C5.4,1.7,1.7,5.4,1.7,10s3.7,8.3,8.3,8.3,8.3-3.7,8.3-8.3S14.6,1.7,10,1.7ZM9.2,7.5v-1.7h1.7v1.7h-1.7ZM9.2,9.2v5h1.7v-5h-1.7Z" vector-effect="non-scaling-stroke"></path>
<path fill="#FFFFFF" fill-rule="evenodd" stroke-width="0" d="M10.8,7.5h-1.7v-1.7h1.7v1.7Z" vector-effect="non-scaling-stroke"></path>
<path fill="#FFFFFF" fill-rule="evenodd" stroke-width="0" d="M10.8,14.2h-1.7v-5h1.7v5Z" vector-effect="non-scaling-stroke"></path>
</svg>
<a class="cc" href="https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html"><u>Information about the Social Security Fairness Act (WEP/GPO)</u></a>
</div>
</div>
<ssa-header class="print-dn"><noscript><header class="bg-logo white" id="banner" role="banner" style="background-color: #0b4778;"><div class="fx fx-jc-sb px2 py0 wrapper"><div class="fs2 fw4 ma0 l-fs3"><a class="fx fx-ai-c hover-yellow py3 white m-py2" href="/"><img alt="" class="svg3 m-svg5" src="/framework/images/logo.svg" height="64" width="64"> <span class="pl1 m-pl2">Social Security</span></a></div><nav class="fs1 fx print-dn"><a class="fx fx-ai-c hover-yellow px2 white" href="https://search.ssa.gov/search?affiliate=ssa" id="ssa-search" title="Search" target="_blank"><svg class="svg1" focusable="false" viewbox="0 0 24 24"><path d="M14.182.0q-1.994.0-3.814.78t-3.132 2.092-2.092 3.132-.78 3.814q0 1.713.558 3.281t1.59 2.847l-6.196 6.187q-.315.315-.315.776.0.469.311.78t.78.311q.46.0.776-.315l6.187-6.196q1.278 1.031 2.847 1.59t3.281.558q1.994.0 3.814-.78t3.132-2.092 2.092-3.132.78-3.814-.78-3.814-2.092-3.132-3.132-2.092-3.814-.78zm0 2.182q1.551.0 2.966.605t2.438 1.628 1.628 2.438.605 2.966-.605 2.966-1.628 2.438-2.438 1.628-2.966.605-2.966-.605-2.438-1.628-1.628-2.438-.605-2.966.605-2.966 1.628-2.438 2.438-1.628 2.966-.605z" vector-effect="non-scaling-stroke"></path></svg> <span class="dn m-dib m-pl1">Search</span> </a><a class="fx fx-ai-c hover-yellow px2 white" href="/menu" id="ssa-menu" title="Menu"><svg class="svg1" focusable="false" viewbox="0 0 24 24"><path d="M3 5h18q.414.0.707.293T22 6t-.293.707T21 7H3q-.414.0-.707-.293T2 6t.293-.707T3 5zm0 12h18q.414.0.707.293T22 18t-.293.707T21 19H3q-.414.0-.707-.293T2 18t.293-.707T3 17zm0-6h18q.414.0.707.293T22 12t-.293.707T21 13H3q-.414.0-.707-.293T2 12t.293-.707T3 11z" vector-effect="non-scaling-stroke"></path></svg> <span class="dn m-dib m-pl1">Menu</span> </a><a class="fx fx-ai-c hover-yellow px2 white" hreflang="es" href="/es" id="ssa-languages" title="Español"><svg class="svg1" focusable="false" viewbox="0 0 14 16"><path fill-rule="evenodd" d="M7 1C3.14 1 0 4.14.0 8s3.14 7 7 7c.48.0.94-.05 1.38-.14-.17-.08-.2-.73-.02-1.09.19-.41.81-1.45.2-1.8-.61-.35-.44-.5-.81-.91-.37-.41-.22-.47-.25-.58-.08-.34.36-.89.39-.94.02-.06.02-.27.0-.33.0-.08-.27-.22-.34-.23-.06.0-.11.11-.2.13-.09.02-.5-.25-.59-.33-.09-.08-.14-.23-.27-.34-.13-.13-.14-.03-.33-.11s-.8-.31-1.28-.48c-.48-.19-.52-.47-.52-.66-.02-.2-.3-.47-.42-.67-.14-.2-.16-.47-.2-.41-.04.06.25.78.2.81-.05.02-.16-.2-.3-.38-.14-.19.14-.09-.3-.95s.14-1.3.17-1.75c.03-.45.38.17.19-.13-.19-.3.0-.89-.14-1.11-.13-.22-.88.25-.88.25.02-.22.69-.58 1.16-.92.47-.34.78-.06 1.16.05.39.13.41.09.28-.05-.13-.13.06-.17.36-.13.28.05.38.41.83.36.47-.03.05.09.11.22s-.06.11-.38.3c-.3.2.02.22.55.61s.38-.25.31-.55c-.07-.3.39-.06.39-.06.33.22.27.02.5.08.23.06.91.64.91.64-.83.44-.31.48-.17.59.14.11-.28.3-.28.3-.17-.17-.19.02-.3.08-.11.06-.02.22-.02.22-.56.09-.44.69-.42.83.0.14-.38.36-.47.58-.09.2.25.64.06.66-.19.03-.34-.66-1.31-.41-.3.08-.94.41-.59 1.08.36.69.92-.19 1.11-.09.19.1-.06.53-.02.55.04.02.53.02.56.61.03.59.77.53.92.55.17.0.7-.44.77-.45.06-.03.38-.28 1.03.09.66.36.98.31 1.2.47.22.16.08.47.28.58.2.11 1.06-.03 1.28.31.22.34-.88 2.09-1.22 2.28-.34.19-.48.64-.84.92s-.81.64-1.27.91c-.41.23-.47.66-.66.8 3.14-.7 5.48-3.5 5.48-6.84.0-3.86-3.14-7-7-7L7 1zm1.64 6.56c-.09.03-.28.22-.78-.08-.48-.3-.81-.23-.86-.28.0.0-.05-.11.17-.14.44-.05.98.41 1.11.41.13.0.19-.13.41-.05.22.08.05.13-.05.14zM6.34 1.7c-.05-.03.03-.08.09-.14.03-.03.02-.11.05-.14.11-.11.61-.25.52.03-.11.27-.58.3-.66.25zm1.23.89c-.19-.02-.58-.05-.52-.14.3-.28-.09-.38-.34-.38-.25-.02-.34-.16-.22-.19.12-.03.61.02.7.08.08.06.52.25.55.38.02.13.0.25-.17.25zm1.47-.05c-.14.09-.83-.41-.95-.52-.56-.48-.89-.31-1-.41-.11-.1-.08-.19.11-.34.19-.15.69.06 1 .09.3.03.66.27.66.55.02.25.33.5.19.63h-.01z" vector-effect="non-scaling-stroke"></path></svg> <span class="dn m-dib m-pl1">Español</span> </a><a class="fx fx-ai-c hover-yellow px2 white" href="https://secure.ssa.gov/RIL/SiView.action" id="ssa-signin" title="Sign in" target="_blank"><svg class="svg1" focusable="false" viewbox="0 0 24 24"><path d="M12 17.016q-.797.0-1.406-.61t-.61-1.405.61-1.405 1.406-.61 1.406.61.61 1.406-.61 1.407-1.406.61zm6 3V9.986H6v10.03h12zm-6-17.11q-1.266.0-2.18.914T8.906 6H9v2.016h6.094V6q0-1.266-.914-2.18T12 2.906zm6 5.11q.797.0 1.406.586t.61 1.383v10.03q0 .798-.61 1.384T18 21.984H6q-.797.0-1.406-.586t-.61-1.384V9.986q0-.798.61-1.384T6 8.016h.984V6q0-2.063 1.477-3.54T12 .985t3.54 1.477T17.015 6v2.016H18z" vector-effect="non-scaling-stroke"></path></svg> <span class="dn m-dib m-pl1">Sign in</span></a></nav></div></header></noscript></ssa-header><script src="https://www.ssa.gov/legacy/components/dist/ssa-header.js"></script>
<!-- MAIN CONTENT -->
<main class="content" id="content" role="main">
<!-- TITLE BAR -->
<section class="bg-ivory-200">
<!-- WRAPPER -->
<div class="py2 wrapper">
<h2 class="fw4 ma0">Benefit Calculation Examples for Workers Retiring in 2025</h2>
</div>
</section>
<!-- WRAPPER -->
<section class="wrapper py0">
<!-- GRID -->
<div class="grid">
<!-- BeginEditable "import" -->
<!-- CELL -->
<div class="cell cell-last print-dn w-100 m-cell-first m-w-25 bg-black-10 fs1 bl">
<!-- MENU (SIDEBAR) -->
<nav class="pt1" role="navigation">
<ul class="list-nb pt2">
<!-- NAVIGATION LINKS -->
<li class="pbe"><a href="../index.html">Office of the Chief Actuary </a></li>
<!-- END NAVIGATION LINKS-->
</ul>
</nav>
</div> <!-- end cell -->
<!-- CELL -->
<div class="cell pa3 print-w-100 w-100 m-w-75 fs1 br">
<div>
<h2 class="fs3 fw6 mb1">Primary Insurance Amount</h2>
The basic Social Security benefit is called the primary insurance amount (PIA).
Typically the PIA is a function of <i>average indexed monthly earnings</i> (AIME).
We determine the PIA by applying a <a href="../COLA/piaformula.html">PIA formula</a>
to AIME. The formula we use depends on the year of first eligibility
(the year a person attains age 62 in retirement cases).
<br>
<br>
<div class="pad-top pad-left pad-right large border-bottom">
<table class="borderblue" style="border-color:#334499; width:100%">
<tr style="background-color:#ffffff;">
<td colspan="2"></td>
<th colspan="2" style="background-color:#eeeeee;"><a href="../COLA/piaformula.html">Formula bend points</a></th>
<td></td>
</tr>
<tr >
<th style="background-color:#eeeeee; width:7%" scope="col">Case</th>
<th style="background-color:#eeeeee; width:12%" scope="col">AIME</th>
<th style="background-color:#eeeeee; width:12%" scope="col">First</th>
<th style="background-color:#eeeeee; width:12%" scope="col">Second</th>
<th style="background-color:#eeeeee;" scope="col">Formula applied to AIME</th>
</tr>
<tr style="background-color:#ffffff;" >
<td>A</td>
<td>$5,556</td><td>$1,226</td><td>$7,391</td>
<td>.9(1226) + .32(5556 - 1226) = <b>$2,489.00</b></td></tr>
<tr>
<td>B</td>
<td>11,351</td><td>996</td><td>6,002</td>
<td>.9(996) + .32(6002 - 996) + .15(11351 - 6002) = <b>$3,300.67</b></td></tr>
</table>
</div>
<p>
Because the worker in case A is first eligible for benefits in 2025,
and also retires in 2025, there are no applicable
<a href="../COLA/colaapplic.html">cost-of-living adjustments,</a> or COLAs,
to the amount computed above. Therefore, the case-A PIA is the case A amount
computed above, $2,489.00.</p>
<p>
The worker in case B is first eligible in 2021 (the year case B reached age 62).
Thus the case-B PIA is the case B amount computed above truncated to the next lower
dime and increased by cost-of-living adjustments, or COLAs, for 2021 through
2024. These <a href="../COLA/colaseries.html">COLAs</a> are 5.9 percent, 8.7 percent, 3.2 percent, 2.5 percent, respectively.
The resulting PIA is $4,018.80.</p>
</div>
<div>
<h2 class="fs3 fw6 mb1">Benefit Based on PIA and Age</h2>
<p>
The amount of retirement benefits paid depends on a person's age when he or
she begins receiving benefits. We reduce benefits taken before a person's
<a href="nra.html">normal (or full) retirement age</a> and we increase benefits
taken after normal retirement age.
</p>
<p>
We assume the worker in case A begins receiving benefits at the earliest possible
age, which is age 62. Because case A's normal retirement age is 67 years,
the benefit amount for case A is reduced for 60 months of
<a href="../quickcalc/early_late.html">early retirement</a>.
The $2,489.00 PIA is thus reduced to a monthly benefit of $1,742.00.
</p>
<p>
The benefit amount for case B, assuming that benefits begin exactly at normal
retirement age of 66 years and 10 months, is not reduced except for rounding down to the
next lower dollar. The $4,018.80 PIA is thus reduced to a monthly benefit of
$4,018.00.
</p>
<p>
In addition to case B, we also have other benefit examples for
<a href="../COLA/examplemax.html">workers whose earnings have equalled or exceeded
maximum taxable amounts</a>. These examples show AIME and benefit amounts for
retirement at ages 62, 65, 66, 67, and 70.
</div>
<div>
<h2 class="fs3 fw6 mb1">Two Other Methods</h2>
<p>
<a href="../COLA/limitedapplic.html">Two other methods for computing a PIA</a>
have limited applicability.
Relatively few new beneficiaries qualify for these two other methods.</p>
</div>
<div>
<p style="text-align:center"><a href="retirebenefit1.html"><b>PREVIOUS</b></a></p>
</div>
<!-- #EndEditable -->
</div> <!-- end cell -->
</div> <!-- end grid -->
</section>
</main>
<!-- FOOTER -->
<ssa-footer class="print-dn"><noscript><footer class="fs1 print-dn" id="footer" role="contentinfo"><div class="wrapper"><a class="db" href="/menu#footer">Footer menu</a></div></footer></noscript></ssa-footer><script src="https://www.ssa.gov/legacy/components/dist/ssa-footer.js"></script>
<!-- SCRIPTS -->
<script src="/framework/js/ssa.firefly.body.js"></script>
</body>
</html>