Workers with Maximum-Taxable Earnings

Social Security benefits depend on earnings
The amount of a person's retirement benefit depends primarily on his or her lifetime earnings. We index such earnings (that is, convert past earnings to approximately their equivalent values near the time of the person's retirement) using the national average wage index. See how we use earnings to compute a retirement benefit amount.

Benefit Examples For Workers With Maximum-Taxable Earnings
The initial benefit amounts shown in the table below assume retirement in January of the stated year, with maximum-taxable earnings since age 22. Benefits in 2013 reflect subsequent automatic benefit increases (if any). The table shows Average Indexed Monthly Earnings (AIME)—an amount that summarizes a person's earnings—and the corresponding monthly benefit amounts. Retirement at age 70 produces the highest ratio of retirement benefit to AIME.

Worker with steady earnings at the maximum level since age 22
Retirement in Jan. Retirement at age 62^1/ Retirement at age 65^2/ Retirement at age 70^3/

AIME Monthly benefits AIME Monthly benefits AIME Monthly benefits

At age 62 In 2013 At age 65 In 2013 At age 70 In 2013

1987 $2,205 $666 $1,390 $2,009 $789 $1,646 $1,725 $1,056 $2,204

1988 2,311 691 1,384 2,139 838 1,678 1,859 1,080 2,162

1989 2,490 739 1,422 2,287 899 1,731 2,000 1,063 2,047

1990 2,648 780 1,434 2,417 975 1,792 2,154 1,085 1,995

1991 2,792 815 1,422 2,531 1,022 1,784 2,332 1,163 2,030

1992 2,978 860 1,447 2,716 1,088 1,831 2,470 1,231 2,072

1993 3,154 899 1,469 2,878 1,128 1,843 2,605 1,289 2,105

1994 3,384 954 1,519 3,024 1,147 1,826 2,758 1,358 2,162

1995 3,493 972 1,506 3,219 1,199 1,857 2,896 1,474 2,283

1996 3,657 1,006 1,519 3,402 1,248 1,885 3,012 1,501 2,266

1997 3,877 1,056 1,550 3,634 1,326 1,946 3,189 1,609 2,362

1998 4,144 1,117 1,605 3,750 1,342 1,929 3,348 1,648 2,368

1999 4,463 1,191 1,690 3,926 1,373 1,947 3,496 1,684 2,389

2000 4,775 1,248 1,727 4,161 1,435 1,986 3,707 1,752 2,426

2001 5,126 1,314 1,757 4,440 1,538 2,057 3,912 1,879 2,513

2002 5,499 1,382 1,802 4,770 1,660 2,164 4,165 1,988 2,591

2003 5,729 1,412 1,815 5,099 1,721 2,213 4,321 2,045 2,629

2004 5,892 1,422 1,791 5,457 1,784 2,247 4,532 2,111 2,658

2005 6,137 1,452 1,781 5,827 1,874 2,298 4,786 2,252 2,761

2006 6,515 1,530 1,803 6,058 1,961 2,310 5,072 2,420 2,851

2007 6,852 1,598 1,822 6,229 1,998 2,279 5,406 2,672 3,047

2008 7,260 1,682 1,874 6,479 2,030 2,263 5,733 2,794 3,114

2009 7,685 1,769 1,864 6,861 2,172 2,288 6,090 3,054 3,218

2010 7,949 1,820 1,917 7,189 2,191 2,309 6,450 3,119 3,286

2011 7,928 1,803 1,900 7,579 2,249 2,370 6,683 3,193 3,364

2012 8,199 1,855 1,887 7,973 2,310 2,349 6,852 3,266 3,321

2013 8,539 1,923 1,923 8,230 2,414 2,414 7,095 3,350 3,350

¹ Retirement at age 62 is assumed here to be at exact age 62 and 1 month. Such early retirement results in a reduced monthly benefit.
² Retirement at age 65 is assumed to be at exact age 65 and 0 months. For retirement in 2003 and later, the monthly benefit is reduced for early retirement. (For people born before 1938, age 65 is the normal retirement age. Normal retirement age will gradually increase to age 67.)
³ Retirement at age 70 maximizes the effect of delayed retirement credits.

Note: Initial monthly benefits paid at ages 65 and 70 in 2000-2001 were slightly lower than the amounts shown above because such initial benefits were partially based on a cost-of-living adjustment (COLA) for December 1999 that was originally determined as 2.4 percent based on CPIs published by the Bureau of Labor Statistics. Pursuant to Public Law 106-554, however, this COLA is effectively now 2.5 percent, and the above figures reflect the benefit change required by this legislation.