Understanding the social security calculator
Social Security replaces a share of your working income in retirement using a progressive formula. It first computes your average indexed monthly earnings (AIME) from your 35 highest-earning years, then applies bend points: 90% of the first slice, 32% of the next, and just 15% of the top. That structure deliberately replaces far more income for lower earners than for higher ones.
This is a simplified estimate that uses your average earnings and the current-year bend points; the official calculation indexes each year's earnings for wage growth and depends on your full retirement age. Claiming before full retirement age permanently reduces the benefit, while delaying past it increases it by about 8% per year until age 70 decisions worth checking against your personalized statement at ssa.gov.
Results are estimates for education only and are not financial advice.