How Much Will I Get From Social Security? Here’s How to Figure it Out

How Much Will I Get From Social Security? Here’s How to Figure it Out


For the most part, every working American knows that Social Security benefits are tied into our paycheck contributions over the years. But how exactly do they come up with the amount once you start claiming them? 

Familiarizing yourself with how your payment amount is calculated may help boost your future Social Security payments and better plan for a financially sound retirement.  

Breaking down the numbers

To be eligible for Social Security benefits, you must earn Social Security credits and pay Social Security taxes. In 2022, for example, workers receive one credit for every $1,510 earned, up to a maximum of four credits each year. Once you’ve reached an eligible age, you need a minimum of 40 credits to begin collecting your benefits. 

The average Social Security benefit for the 64 million Social Security recipients in the U.S. is currently $1,657 per month. Based on the cost-of-living adjustment (COLA), Social Security payments were increased by 5.9% beginning in January 2022. 

Calculating and claiming your Social Security benefits can be complicated. That’s why the Social Security Administration offers an online calculator, providing estimates based on your actual earnings record. By entering the earnings from your online Social Security Statement, you can find out an estimate of your future retirement benefits, based on different retirement age scenarios. 

Check out our detailed guide to better understand how to maximize your Social Security benefits.

Estimating retirement costs

Nearly 70% of Americans worry they won’t have the money to retire comfortably. From the rising cost of living to longer life expectancy to unexpected healthcare costs, it’s impossible to pinpoint an exact amount to cover your retirement expenses. Workers approaching or just entering retirement need a strategy in place for spending (and saving) their funds. One tactic that can help: Delay collecting Social Security as long as possible. 

Waiting until you reach full retirement age makes it more likely that you can collect 100% of what you’ve built up.

While you’re eligible beginning at age 62, you’re only entitled to a portion of your benefits at that age. For example, if you start collecting at 62, and your full retirement age is 66, you may miss out on 25% of your maximum benefit every month for as long as you live — and that adds up to a significant amount. 

What’s your financial plan for the future?   

The longer you can defer collecting your Social Security benefits, the greater amount those paychecks will be. A reverse mortgage loan can help provide the funds you need to sustain a comfortable retirement until you’re eligible for the maximum amount. This valuable financial tool is available to homeowners age 55 and over in select states.1 It allows you to leverage the equity built up in your home and use the funds as you wish — all while you continue to live in and own your home.2 The funds can be accessed as a lump sum, monthly payments or a line of credit that’s available if and when you need it.3 

Contact me today for more information. We’ll schedule an information session with a loan specialist to get your questions answered.

1Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply. Visit for details. 

2As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.

3Borrowers who elect a fixed rate loan will receove a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.