Moneyzine
/Retirement Guides/Social Security Benefits Calculator

Social Security Benefits Calculator

Moneyzine Editor
Author: 
Moneyzine Editor
4 mins
October 4th, 2023
Advertiser Disclosure

This calculator can help you compare the future value of your Social Security benefits under different retirement age scenarios. The calculator can accommodate three retirement ages (early, normal, and delayed), along with the expected annual benefit at each age. Using this information, along with a projected ending age to collect benefits, the tool can provide the future value of each option.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Early Retirement Age (Years)

The Social Security Administration considers the collection of benefits at the age of 62 as early retirement. However, you can enter any value you'd consider "early."

Early Social Security Benefit ($ / Year)

This is the value of the Social Security benefits you will be receiving beginning at "early" retirement age. You can find a projection for this benefit on your Social Security Statement, or by visiting the Social Security website.

Normal Retirement Age (Years)

Once again, the Social Security Administration has defined "normal" or "full" retirement age. If you were born between 1943 and 1954, normal retirement age is 65. If you were born after 1960, then normal retirement age is defined as 67. As was the case with the "early" age entered earlier, you can choose any age you'd consider "normal."

Normal Social Security Benefit ($ / Year)

This is the value of the Social Security benefits you will be receiving beginning at "normal" retirement age. You can find a projection for this benefit on your Social Security Statement, or by visiting the Social Security website.

Delayed Retirement Age (Years)

Finally, this calculator allows you to enter a third retirement age, which is labeled as "delayed." At any given level of income, monthly Social Security benefits will increase the longer the beneficiary waits to start collecting benefits. That being said, the longer the recipient waits to receive their benefits, the shorter the time over which benefits are collected.

Delayed Social Security Benefit ($ / Year)

This is the value of the Social Security benefits you will be receiving beginning at "delayed" retirement age. You can find a projection for this benefit on your Social Security Statement for a delayed age of 70.

Final Benefit Age (Years)

This is the final age you expect to collect Social Security benefits.

Return on Investment (% / Year)

The calculator contains a default value of 0% for return on investment. This allows you to make a direct comparison of the total dollars received for each of the benefits, before introducing a potential return on the money collected. For example, the default values (which are based on a real scenario), indicated there is a benefit to delaying the collection of payments from the Social Security system. However, if we assume the recipient invests that money, then the calculator may indicate an advantage for those collecting benefits earlier.

Early / Normal / Delayed Retirement Benefit ($)

This is the total of all benefits collected from the Social Security system; starting at the retirement age indicated and ending at the final benefit age. This is the future value of all benefits received for each of the selected retirement ages.

Benefit of Normal Retirement ($)

This is the calculated differential benefits received between early and normal retirement age. A positive value indicates the scenario chosen favors delaying retirement.

Benefit of Delayed Retirement ($)

This is the calculated differential in benefits received between early and delayed retirement age. Once again, a positive value indicates the scenario chosen favors delaying retirement.


Social Security Benefits Calculator


Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

Related Content

  • What Can Help You Meet Your Budget While Shopping for Important Items?
    Budgeting while ensuring you don't compromise on quality can seem daunting. Whether filling your pantry, updating your wardrobe, or keeping up with the latest tech, smart shopping strategies are crucial for keeping your finances in check.
    April 2nd, 2024
  • How to Make a Million Dollars in 10 Years
    Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
    March 26th, 2024
  • How to Apply Maslow’s Hierarchy to Your Money This Year
    You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
    March 27th, 2024
  • How to Tackle Multiple Savings Goals
    When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
    March 22nd, 2024
  • The Countdown to Early Retirement: 10 Expenses to Eliminate
    Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
    March 22nd, 2024

Contributors

Moneyzine 2024. All Rights Reserved.