How Your Social Security Is Calculated (& What to Do About It)

For many retirees, Social Security is a cornerstone of their income—but few people understand exactly how their benefit is calculated or what they can do to influence it. Your benefit amount is based on your 35 highest-earning years, adjusted for inflation. If you’ve worked fewer than 35 years, the government adds zero-income years into the equation, which can lower your average.

Timing also plays a major role. If you choose to collect benefits before your full retirement age (which ranges from 66 to 67, depending on when you were born), your monthly check will be permanently reduced. On the other hand, waiting to file can increase your benefit by a significant percentage each year up to age 70.

Even though Social Security is a government program, you still have control over how much you receive. Working a few more years, double-checking your earnings record, and choosing the right time to file can make a big difference in your long-term financial picture.

Curious how Social Security fits into your retirement plan? Reach out to speak with one of our agents and get the clarity you deserve.