Question 1

How is my Social Security benefit calculated?

Accepted Answer

Social Security calculates your benefit using your highest 35 years of earnings. Your earnings are indexed for inflation, then averaged to find your Average Indexed Monthly Earnings (AIME). The Primary Insurance Amount (PIA) — your benefit at Full Retirement Age — is calculated using a formula with two "bend points": 90% of the first $1,174 of AIME, plus 32% of AIME between $1,174 and $7,078, plus 15% of AIME over $7,078 (2025 figures).

Question 2

What is Full Retirement Age (FRA)?

Accepted Answer

Full Retirement Age is when you can collect your full Social Security benefit without any reduction. For people born in 1960 or later, FRA is 67. For those born between 1943 and 1954, it is 66. For birth years 1955-1959, it gradually increases from 66 and 2 months to 66 and 10 months. Claiming before FRA permanently reduces your benefit, while delaying past FRA increases it.

Question 3

How does claiming early vs. late affect my benefits?

Accepted Answer

Claiming at 62 (the earliest age) permanently reduces your benefit by about 30% compared to waiting until FRA at 67. For each month before FRA, your benefit is reduced by 5/9 of 1% for the first 36 months and 5/12 of 1% for additional months. Delaying past FRA earns delayed retirement credits of 8% per year (2/3% per month) up to age 70. At 70, your benefit would be 24% higher than at FRA.

Question 4

Can my spouse collect Social Security based on my earnings?

Accepted Answer

Yes. A spouse can claim a spousal benefit worth up to 50% of the higher-earning spouse's PIA at Full Retirement Age. The spouse must be at least 62 or caring for a qualifying child. If the spouse has their own work record, they receive the higher of their own benefit or the spousal benefit. Divorced spouses may also qualify if the marriage lasted at least 10 years.

Question 5

Are Social Security benefits taxable?

Accepted Answer

Yes, up to 85% of your Social Security benefits may be taxable depending on your combined income. If your combined income (adjusted gross income + nontaxable interest + half your SS benefits) exceeds $25,000 for single filers or $32,000 for married filing jointly, up to 50% of benefits are taxable. Above $34,000 (single) or $44,000 (married), up to 85% can be taxed. Thirteen states also tax Social Security benefits to varying degrees.

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