Social Security FAQ
Learn about eligibility for Social Security benefits -- whether you are eligible, when you can collect them, and how much you will receive.
How much can I expect to get in Social Security benefits?
Who is eligible to collect Social Security benefits?
When can I start collecting Social Security retirement benefits?
» How are my Social Security benefit amounts calculated?
Can I keep a job even after I start collecting retirement, dependents, or survivors benefits?
Can I collect more than one type of benefit at a time?
Can I claim spousal benefits if I'm divorced?
How are my Social Security benefit amounts calculated?
The calculations are complicated. The amount of any benefit is determined by a formula based on the average of your yearly reported earnings since you began working.
But to complicate matters further, Social Security computes your average earnings differently depending on your age. If you reached age 62 or became disabled on or before December 31, 1978, Social Security averages the actual dollar value of your total past earnings -- and bases the amount of your monthly benefits on that amount.
If you turn 62 or become disabled on or after January 1, 1979, Social Security divides your earnings into two categories: Earnings from before 1951 are credited with their actual dollar amount, up to a maximum of $3,000 per year; and from 1951 on, yearly limits are placed on earnings credits, no matter how much you actually earned in those years.
Back to top
|
