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How a Social Security Benefit Is Figured—for Beginners and for Experts

How a Social Security Benefit Is Figured—for Beginners and for Experts
If you don't want to be an expert, let the SSA calculate your estimated benefit for you. Renae Wang
Tom Margenau
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There are some columns I could repeat over and over again—because I’m asked the same questions over and over again. One of the most common questions I’m asked is this: “How is my Social Security benefit figured?” I’ve answered this question many times in past columns, and I’m going to do it again today.

This answer will be in two parts. The first part will provide a relatively simple explanation of the process. It is for those people (probably the majority of my readers) who want a general idea of how their benefit will be figured. They just don’t need or want to know all the nitty-gritty details. The second part of the answer will be for those who want to know it all and want to become experts in the Social Security benefit computation formula.

Tom Margenau
Tom Margenau
Author
Tom Margenau worked for 32 years in a variety of positions for the Social Security Administration before retiring in 2005. He has served as the director of SSA’s public information office, the chief editor of more than 100 SSA publications, a deputy press officer and spokesman, and a speechwriter for the commissioner of Social Security. For 12 years, he also wrote Social Security columns for local newspapers, and recently published the book “Social Security: Simple and Smart.” If you have a Social Security question, contact him at [email protected]
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