Understanding How Social Security Calculates Your Benefit Amount

Social Security is not one-size-fits-all. How much you receive in benefits rests on several factors. According to an article by Lagrada, the Social Security Administration uses your eligibility age and lifetime earnings record to determine how much you receive in retirement benefits, which they refer to as the primary insurance amount (PIA). It’s based on the inflation-adjusted wages from your 35 highest-paid years of work. If you wait until full retirement age to collect, you will receive 100 percent of your PIA. Your benefits will be reduced if you claim Social Security before reaching full retirement age.

The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and will ensure the long-term solvency of the Social Security program.