# Your Retirement Benefit: How It Is Figured

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Contacting Social Security
For more information and to find copies of our publications, visit our website at www.socialsecurity.gov or call toll-free, 1-800-772-1213 (for the deaf or hard of hearing, call our TTY number, 1-800-325-0778). We can answer specific questions and provide information by automated phone service 24 hours a day. We treat all calls confidentially. We also want to make sure you receive accurate and courteous service. That is why we have a second Social Security representative monitor some telephone calls.

Factors that can change the amount of your retirement benefit
• You choose to get benefits before your full retirement age. You can begin to receive Social Security benefits as early as age 62, but at a reduced rate. Your basic benefit will be reduced by a certain percentage if you retire before reaching retirement age. • You are eligible for cost-of-living benefit increases starting with the year you become 62. This is true even if you do not get

(over)

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Your Retirement Benefit: How It Is Figured

Estimating your Social Security retirement benefit
1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 \$3,600 3,600 3,600 3,600 4,200 4,200 4,200 4,200 4,800 4,800 4,800 4,800 4,800 4,800 4,800 6,600 6,600 7,800 7,800 7,800 7,800 9,000 10,800 13,200 14,100 15,300 16,500 11.88 11.18 10.59 10.54 10.07 9.41 9.13 9.05 8.62 8.30 8.14 7.75 7.56 7.27 7.14 6.73 6.38 5.97 5.64 5.38 5.12 4.66 4.39 4.14 3.85 3.60 3.40

Step 5: a. Multiply the first \$612 in Step 4 by 90%. \$_________ b. Multiply the amount in Step 4 over \$612 and less than or equal to \$3,689 by 32%. \$_________ c. Multiply the amount in Step 4 over \$3,689 by 15%. \$_________ Step 6: Add a, b and c from Step 5. Round down to the next lowest dollar. This is your estimated monthly retirement benefit at age 65 and 10 months, your full retirement age. \$_________ Step 7: Multiply the amount in Step 6 by 75.8%. This is your estimated monthly retirement benefit if you retire at age 62. \$_________ A. B. Year Maximum Actual earnings earnings
1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 17,700 22,900 25,900 29,700 32,400 35,700 37,800 39,600 42,000 43,800 45,000 48,000 51,300 53,400 55,500 57,600 60,600 61,200 62,700 65,400 68,400 72,600 76,200 80,400 84,900 87,900

C. Index factor
3.15 2.90 2.66 2.41 2.29 2.18 2.06 1.98 1.92 1.80 1.72 1.65 1.58 1.52 1.45 1.44 1.40 1.35 1.28 1.21 1.15 1.09 1.03 1.01 1.00 1.00

D. Indexed earnings

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Printed on recycled paper

Social Security Administration SSA Publication No. 05-10070 ICN 467100 Unit of Issue - HD (one hundred) October 2004 (Recycle prior editions)