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How the estimate is calculated

Claiming Planner follows the retired-worker benefit calculation in distinct, testable stages. The current package is a preview pending named reviewer approval.

1. Cap and index earnings

Annual covered earnings are capped at that year's contribution and benefit base. Earnings before the indexing year are adjusted using the National Average Wage Index.

2. Find AIME

The 35 highest indexed years are totaled, divided by 420 months, and rounded down to the next whole dollar. Missing years become zero only after you confirm them.

3. Calculate PIA

The eligibility-year bend points apply 90%, 32%, and 15% factors. The result is rounded down to the next lower dime.

4. Adjust for claiming age

Benefits claimed before full retirement age are reduced month by month. Delayed retirement credits apply after full retirement age through age 70.

Primary sources

• SSA: Social Security Benefit Amounts
• SSA: National Average Wage Index
• SSA: Benefit Formula Bend Points
• SSA: Contribution and Benefit Base

Published validation cases

Automated tests verify the published 2026 bend points of $1,286 and $7,749. They also reproduce the SSA example in which an AIME of $5,825 produces a PIA of $2,609.80, and the example in which a worker with full retirement age 67 receives approximately $1,826 per month when claiming at 62.

These checks verify implementation against specific published examples; they do not turn an estimate into an official benefit determination. Report a discrepancy through our corrections process.

Rules retrieved: September 9, 2026. Next review: before January 1, 2027.