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A free, open-source Social Security strategy calculator. Certain situations require additional input. Click here to select situation (s) that may apply to you (and/or your spouse, if filing jointly).
Open Social Security is a free, open-source Social Security strategy calculator. The calculator runs the math for each possible claiming age (or, if you're married, each possible combination of claiming ages) and reports back, telling you which strategy is expected to provide the most total spendable dollars over your lifetime.
To understand Social Security benefit calculations, you first need to understand one piece of jargon: “primary insurance amount” (PIA). A person’s primary insurance amount is the amount of their monthly retirement benefit, if they file for that benefit exactly at their full retirement age .
Figure out the percentage of your PIA that the calculator thinks you are getting (because it’s assuming you file on your planned retirement date, or at age 62 if your planned retirement date is before age 62). Divide your estimated retirement benefit by that percentage, to find your PIA.
The easiest way to calculate your actual PIA (or your retirement benefit at various ages) using your own assumptions as to future earnings is to use the calculator at SSA.tools. If you are older than full retirement age, your statement will instead include an estimate of what your retirement benefit would be if you filed right now.
A Social Security spousal benefit is calculated as 50% of the other spouse’s PIA. Note that the age at which the other spouse files for Social Security benefits doesn’t affect this calculation. Example: Jane files for her retirement benefit at age 63 and is therefore receiving a retirement benefit that is smaller than her PIA.
For reference, all of these factors (and several others) are accounted for by the Open Social Security calculator. The above is just my attempt to explain the general decision making process. Want to Learn More about Social Security?
With regard to delaying Social Security, we can calculate an expected return based on life expectancies. But that figure turns out to be nowhere near 8% in most cases. For an average unmarried male, the expected return from waiting to file for Social Security works out to about 1.8% above inflation.
To understand Social Security benefit calculations, you first need to understand one piece of jargon: “primary insurance amount” (PIA). A person’s primary insurance amount is the amount of their monthly retirement benefit, if they file for that benefit exactly at their full retirement age .
When you file for a Social Security benefit, the SSA will ask you to estimate your earnings for that year. Your earnings test withholding will be based on that estimated amount. Then, once the year is over and your actual earnings amount is known, you settle up with the SSA.