So you are growing old and wondering about what a peaceful youth you have lived till now and wish to live furthermore with a better and most important to mention a secure life. And to be secure there are some elements you will need in life such as money the most important and some extra help and services after your retirement. And so to cover that part and bring you some useful information related to your retirement and financial bonus, this article will read you about how you can calculate your social security benefits payment you will receive. However, to calculate your social security benefits payments you will have to provide some details.

Details or Information you will need or that will affect your benefits

  1. Date of birth
  2. Annual income or earnings
  3. Age you will apply or elect for social security benefits


How to calculate:

35 years of service \ career

The foremost thing that will require calculating the social security benefits is that you must have worked for 35 years, and after that only you can apply for claiming the social security benefits payments. However, if you choose to claim the benefits before the retiring period i.e. 62, the amount in the social security benefits will be reduced by a certain percentage.

National Average Wage Index, NAWI Calculation

After assuming that you have crossed your retirement age, SSA (Social Security Administration) takes your income into consideration for indexing the National Average Wage Index, (meaning wages of U.S workers are measured and calculated annually.)

Average of the highest income

Social Security Administration SSA, averages the highest incomes from 35 years of your career. Or if you have worked for more than 35 years, social security administration will take only 35 highest-earning years, which means the chances of social service benefits payments is high.

Whereas, working for less than 35 years will not have enough highest-earning years, and so the chances of social service benefits payments will be less

Please Note The author of a guide to social security retirement –

“A Social Security Owner’s Manual,” and the principle of a financial planning firm Blankenship Financial Planning, Ltd., Mr. Jim Blankenship says while indexing the highest earning years, the current year earnings will not be included in the highest-earning year’s list.

Final Step

After doing all the above mentioned task and to complete the social security benefits calculation, your age and the age you wish to elect the social security benefits will be considered.

Essence for calculating Social Security Benefits

This formula will estimate your monthly payments from social security benefits.

  1. Average Monthly Index Earnings (AMIE) formula
  2. Summing up all 35 highest-earning years indexed by SSA.
  3. Dividing the sum by 35 to determine annual average earning.
  4. Further dividing the obtained result by 12 to estimate monthly average earnings.


2019 Formula – Individual who is eligible for the social security benefits in 2019 and have turned to age 62 in this year, here is the formula to determine the payments.

  1. Multiply the first 926 US dollars of AMIE by 90 percent.
  2. Earnings up to 5,583 US dollars of AMIE by 32 percent.
  3. And Earnings over 5,583 US dollars of AMIE by 15 percent.


In Short

90% of first $926

32% of the earnings between $926 & $5853

15% of earnings equal or greater than $5583

In Conclusion

SS benefits provide you the payment cover for disability insurance, unemployment insurance, survivors’ benefits, and other benefits.

To make financial support handy here was the quick and easy formula to estimate what SS benefits payments you’ll receive. And now before making any calculation mark down the following written paragraph. Make sure to take the age as the most important factor as it will be a prime reason for the payments swing.