Social Security retirement benefits are calculated using your highest 35 years of indexed earnings, not just your recent income.
The Social Security Administration (SSA) determines your monthly retirement benefit by first calculating your average indexed monthly earnings (AIME) over your highest 35 years of earnings. These earnings are adjusted for inflation to reflect their value over time. Then, a formula is applied to your AIME to arrive at your primary insurance amount (PIA), which is the benefit you would receive if you start claiming at your full retirement age. Finally, your benefit is adjusted based on the age you choose to begin receiving payments.
This information provides a general overview of how Social Security benefits are calculated and does not constitute financial advice.
How can I get an official estimate of my Social Security retirement benefits?
You can obtain an official estimate of your Social Security retirement benefits by creating an account on the Social Security Administration's website (ssa.gov) and accessing your 'my Social Security' profile. There, you will find your personalized Social Security Statement, which includes estimates of your future benefits at different claiming ages. This statement also details your earnings history as recorded by the SSA. It is the most accurate way to understand your potential future income from Social Security.