Social Security Bend Points Calculator 2025
Calculate your Social Security benefits using the latest 2025 bend points, AIME calculations, and COLA adjustments
2025 Social Security Updates:
- First bend point: $1,174 (90% rate)
- Second bend point: $7,078 (32% rate)
- Maximum taxable earnings: $176,700
- COLA adjustment: 2.5% for 2025
Earnings History
Understanding Social Security Bend Points in 2025
Social Security bend points are the dollar amounts used in the formula that calculates your Primary Insurance Amount (PIA) - the monthly benefit you'll receive at full retirement age. The bend points divide your Average Indexed Monthly Earnings (AIME) into three portions, each credited at different rates.
2025 Bend Points Formula
- 90%of the first $1,174 of your AIME
- 32%of AIME between $1,174 and $7,078
- 15%of AIME above $7,078
How AIME is Calculated
- Earnings Record: Social Security tracks your earnings for each year you work
- Indexing: Past earnings are adjusted for wage inflation up to age 60
- Selection: Your highest 35 years of indexed earnings are selected
- Average: Total indexed earnings divided by 420 months (35 years)
Important Note:
If you have fewer than 35 years of earnings, zeros are included in the calculation, which will lower your AIME and resulting benefit.
2025 COLA and Social Security Updates
2025 Key Figures
- COLA: 2.5% increase
- Maximum Taxable Earnings: $176,700
- Retirement Earnings Test Exempt Amount:
- • Under FRA: $22,320/year
- • Year of FRA: $59,520/year
- Substantial Earnings: $29,700
Benefit Amounts
- Average Benefit: ~$1,920/month
- Maximum Benefit at FRA: $3,822/month
- Maximum Benefit at 70: $4,873/month
- SSI Federal Payment: $967/month
How COLA Affects Bend Points
The Cost-of-Living Adjustment (COLA) is applied to bend points each year based on the Consumer Price Index for Urban Wage Earners (CPI-W). The 2025 bend points reflect a 2.5% increase from 2024:
| Year | First Bend Point | Second Bend Point |
|---|---|---|
| 2024 | $1,115 | $6,721 |
| 2025 | $1,174 | $7,078 |
Optimizing Your Social Security Benefits
Key Strategies to Maximize Benefits
Work 35+ Years
Zeros in your earnings record significantly reduce your benefit. Working at least 35 years ensures no zeros in your calculation.
Delay Benefits
Each year you delay past FRA increases your benefit by 8% until age 70 - a guaranteed return unmatched by most investments.
Earn More
Higher earnings replace lower-earning years in your 35-year calculation, especially beneficial later in your career.
Age-Based Claiming Strategies
Early Retirement
Receive 70-75% of PIA. Best if you need income immediately or have health concerns.
Full Retirement Age
Receive 100% of PIA. No earnings test applies. Good balance of benefit amount and years of collection.
Maximum Benefit
Receive 124-132% of PIA. Ideal if you have longevity in your family or other retirement income.
Frequently Asked Questions
How often do bend points change?
Bend points are adjusted annually based on changes in the National Average Wage Index. The adjustment typically occurs each October for the following year.
Do bend points affect current beneficiaries?
No. Once your PIA is calculated at age 62, future bend point changes don't affect your benefit. Only COLA adjustments will change your benefit amount.
What if I work after claiming benefits?
Additional earnings can increase your benefit if they're among your highest 35 years. Social Security automatically recalculates your benefit each year.
How accurate is this calculator?
This calculator provides estimates based on current law and your input. For official calculations, create an account at ssa.gov or visit your local Social Security office.
What about spousal benefits?
Spousal benefits can be up to 50% of your PIA if claimed at the spouse's FRA. The bend points calculation determines the worker's PIA, which then determines the spousal benefit amount.