Social Security Calculator

2026 Cost-of-Living Adjustment

• 2026 COLA:
  2.8% increase
• Average Benefit Increase:
  $56 per month
• New Average Benefit:
  $2,071 per month (up from $2,015)
• Effective Date:
  January 2026

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year compared to the third quarter of the year before that.

Primary Insurance Amount (PIA) Calculation

• First Bend Point:
  90% of AIME up to $1,234
• Second Bend Point:
  32% of AIME between $1,234 and $7,457
• Third Tier:
  15% of AIME above $7,457
• Formula:
  PIA = (90% × min(AIME, $1,234)) + (32% × min(max(AIME - $1,234, 0), $6,223)) + (15% × max(AIME - $7,457, 0))

The bend point structure means lower earners receive a higher percentage replacement rate, while higher earners receive a lower percentage.

• Current Annual Income / AIME:
  Input your annual income or average indexed monthly earnings if known. The calculator estimates your Primary Insurance Amount (PIA) using 2026 bend points (90% / 32% / 15%).
• Birth Year:
  Determines your Full Retirement Age (67 for those born 1960 or later). Used to calculate early reduction and delayed retirement credits.
• Claiming Age:
  Select 62 (early, ~30% reduction), FRA (100% PIA), or 70 (124% with delayed credits). The calculator shows the monthly benefit at each age for comparison.
• Earnings Test (If Working):
  If you plan to work while receiving benefits before FRA, enter expected earnings to check against the 2026 limit ($24,480/year). Benefits are reduced $1 for every $2 above the limit.
• Results:
  Monthly benefit at each claiming age, Medicare Part B deduction ($202.90), net check amount, and breakeven analysis showing the crossover age where delayed claiming pays more.

How Claiming Age Affects Benefits

• Early Retirement (Age 62):
  Approximately 30% reduction from PIA. Benefits are reduced by 5/9% per month for the first 36 months early, then 5/12% per month for additional months.
• Full Retirement Age (FRA):
  100% of PIA. For those born in 1960 or later, FRA is 67. For those born 1955-1959, FRA gradually increases from 66 to 67.
• Delayed Retirement (Age 70):
  Approximately 124% of PIA (24% increase). Benefits increase by 8% per year (2/3% per month) for each year you delay past FRA, up to age 70.
• Maximum Delay:
  Delayed retirement credits stop at age 70. There is no benefit to delaying past age 70.

These adjustments are permanent. Once you claim, your benefit amount (before COLA adjustments) remains fixed for life based on your claiming age.

Working While Receiving Benefits

• 2026 Earnings Limit:
  $24,480 per year for those under Full Retirement Age
• Reduction Formula:
  $1 reduction for every $2 earned above the limit
• Example:
  If you earn $30,000 and the limit is $24,480, you exceed by $5,520. Your annual benefit is reduced by $2,760 ($5,520 ÷ 2).
• After Full Retirement Age:
  No earnings limit. You can work and earn any amount without reducing your Social Security benefits.

Benefits withheld due to the earnings test are not lost forever. Once you reach Full Retirement Age, your benefit is recalculated to account for the months benefits were withheld, effectively increasing your future benefits.

2026 Medicare Premium Impact

• 2026 Standard Premium:
  $202.90 per month
• Income-Related Adjustment (IRMAA):
  Higher earners may pay more based on modified adjusted gross income from two years prior
• Net Benefit:
  Your actual Social Security check is your benefit minus the Medicare Part B premium
• Example:
  If your benefit is $2,500 and Medicare Part B is $202.90, your net check is $2,297.10

Medicare Part B covers doctor visits, outpatient care, and preventive services. The premium is adjusted annually and may be higher for high-income beneficiaries.

Understanding the Crossover Point

• Early Claiming Advantage:
  You receive benefits for 5 more years (ages 62-67), providing immediate income
• Delayed Claiming Advantage:
  You receive a higher monthly benefit (100% vs. ~70% of PIA), providing more income per month
• Breakeven Age:
  Typically between ages 78-82. If you live past this age, delayed claiming provides more total lifetime benefits
• Key Factor:
  Your health and family longevity history are important considerations when deciding when to claim

The breakeven point varies based on your specific benefit amounts. Use the calculator's breakeven chart to see the exact crossover point for your situation.