How to use this Social Security calculator

In just a few steps, the Yahoo Finance Social Security calculator can reveal a forecast of your monthly benefits. You will also learn how claiming early can impact the amount you'll receive.

Get started:

First, enter the year you were born.

Next, enter your average annual salaryover your work life. Your Social Security statement (available online at ssa.gov ) will provide an earnings record for each year you were employed. Your benefits are based on your 35 highest-paid years. 

Then, enter the year you intend to claim benefits. This is where you can model outcomes by entering different ages — and seeing how the changes impact your monthly benefits. You can also enter your full retirement age to see an estimate of your full benefits. Or, input age 70 for a forecast of your maximum Social Security benefit. 

Yahoo Finance insight: Your benefits are not only based on your average lifetime income, but on when you begin receiving Social Security. You can begin as early as age 62 and receive a lower monthly payment. You can also begin getting a monthly Social Security check when you attain your full retirement age, which is between 66 and 67, depending on your birth year. If you wait until 70 to receive Social Security, you will receive the maximum monthly payment. 

Results

The results will show an estimated monthly benefit. The highlighted box will also reveal just how much claiming early can reduce your benefit, for example, "Claiming 5 years early reduces your benefit by about 30% from the full amount."

How Social Security is calculated

Social Security retirement benefits are primarily determined using your lifetime earnings. The Social Security Administration adjusts your past earnings so money you earned decades ago is valued fairly when compared with today's wages. 

Then the agency generally uses your 35 highest-earning years to calculate your average indexed monthly earnings, or AIME. Finally, a formula is applied to your AIME to determine your primary insurance amount, or PIA.

Your PIA is essentially the monthly retirement benefit you're eligible to receive at your full retirement age (age 67 for people born in 1960 or later). Claim earlier, and your monthly benefit is reduced. Claim later and your benefit increases until age 70.

Claiming at age 62 can permanently reduce retirement benefits by as much as 30% compared to waiting until 67. Waiting can pay off, but delaying isn't practical for everyone. Your health, savings, family needs, and life expectancy are all factors you should consider when deciding to claim benefits. 

Important Social Security terms to know

It pays to understand how Social Security works and how different rules can impact your retirement income. Here are a few important terms to understand:

• Primary insurance amount (PIA): The monthly retirement benefit you're entitled to at full retirement age before adjustments for claiming early or late.

• Full retirement age (FRA): The age when you qualify for your full retirement benefit. FRA ranges from 66 to 67 for most people approaching retirement today, depending on your birth year.

• Early retirement reduction: A permanent reduction in your monthly benefit when you claim before FRA. 

• Delayed retirement credits: Increases your retirement benefit if you wait beyond your FRA to claim. For people born in 1943 or later, benefits generally increase 8% for each year you delay, up to age 70.

• Cost of living adjustment (COLA): An adjustment Social Security makes to benefits each year to help keep up with inflation. If inflation doesn't rise enough under SSA's formula, there might not be a COLA that year.

• Spousal benefit: A benefit you may qualify for based on a current or former spouse's earnings record. If you qualify for a retirement benefit based on your own work history, Social Security pays that amount first and may add a spousal benefit if it results in a higher total payment.

• Social Security Fairness Act: A law signed in 2025 that repealed the Windfall Elimination Provision and Government Pension Offset. Those rules reduced Social Security benefits for some people receiving pensions from jobs where they didn't pay Social Security taxes on their earnings. The repeal applies to benefits payable for January 2024 and later.

What's the best age to claim Social Security — 62, 67, or 70?

There isn't one specific age that works best for everyone in every situation. Claiming at 62 gives you access to money sooner, but it locks in a smaller monthly benefit. If your FRA is 67, waiting until then gives you 100% of your PIA, while waiting until 70 generally boosts that amount to 124%.

Waiting makes sense if you expect to live a long time or have other income sources available. Claiming earlier can make more sense if you need the income now, are forced to stop working sooner than expected, or have health issues.

Can I still collect Social Security if I have a pension from a job that didn't pay into Social Security?

Yes, assuming you otherwise qualify for Social Security. The Social Security Fairness Act repealed WEP and GPO, which previously reduced benefits for some workers who received pensions from jobs where they didn't pay Social Security taxes. Starting with benefits paid in January 2024 and later, receiving a government or foreign pension from a job where you didn't pay Social Security taxes no longer reduces your benefits. 

How many work credits do you need to qualify for Social Security?

Most people need 40 Social Security credits —  generally equal to about 10 years of work — to qualify for retirement benefits based on their own earnings record. In 2026, you earn one credit for every $1,890 in covered earnings, up to four credits per year.

If you were paid "under the table" and those wages weren't reported to Social Security, they generally won't appear on your earnings record. Likewise, someone who spent much of their adult life as a stay-at-home parent may not have enough credits for a retirement benefit based on their own work history.

However, having fewer than 40 credits doesn't necessarily mean you can't receive Social Security. A spouse or qualifying ex-spouse may be eligible for benefits based on another worker's record, even if they don't have enough credits of their own.

Can I work while collecting Social Security benefits?

Yes, you can work and collect Social Security retirement benefits at the same time. However, if you still haven't hit your full retirement age, the Social Security Administration may temporarily withhold some benefits. In 2026, SSA withholds $1 for every $2 you earn above $24,480 if you're under your full retirement age. During the year you reach FRA, the limit rises to $65,160, with $1 withheld for every $3 above the limit before the month you reach FRA.

Once you reach FRA, there's no earnings limit. SSA also recalculates your benefit at FRA to give you credit for months when benefits were withheld because of excess earnings.

How do spousal and survivor benefits work if my spouse passes away or we divorce?

You may qualify for Social Security based on a spouse's or former spouse's earnings record. An ex-spouse can potentially qualify for spousal benefits if the marriage lasted at least 10 years and other eligibility requirements are met.

If your spouse dies, survivor benefits work differently. A surviving spouse can generally claim reduced survivor benefits starting at age 60, or age 50 if disabled, and may receive up to 100% of the deceased spouse's benefit once the survivor hits full retirement age. A qualifying divorced spouse can also receive survivor benefits if the marriage lasted at least 10 years.

If you qualify for both your own retirement benefit and a survivor benefit, you don't necessarily have to claim both at the same time. In some cases, you can collect one benefit first and then switch to the other benefit later if it results in a higher monthly payment.