Calculate 2025 Social Security benefits using bend points formula with AIME (Average Indexed Monthly Earnings) and PIA (Primary Insurance Amount) calculations. Determine monthly retirement benefit based on earnings history, bend point thresholds ($1,226/$7,391), and progressive replacement rates (90%/32%/15%) for accurate benefit estimation.
Frequently Asked Questions
What are Social Security bend points and how do they work in 2025?
Social Security **bend points** = income thresholds where benefit replacement rate changes (progressive formula favors lower earners). **2025 bend points**: $1,226 and $7,391 AIME (Average Indexed Monthly Earnings). **PIA (Primary Insurance Amount) formula**: **(1) First $1,226 AIME**: Replaced at **90%** → $1,226 × 0.90 = $1,103.40/month. **(2) AIME $1,226-$7,391**: Replaced at **32%** → ($7,391-$1,226) × 0.32 = $1,972.80/month. **(3) AIME above $7,391**: Replaced at **15%** → (AIME-$7,391) × 0.15. **Example**: $100k career avg earner → AIME $5,000/mo → PIA = ($1,226×90%) + ($3,774×32%) = $1,103 + $1,208 = **$2,311/mo at FRA** (Full Retirement Age 67). **Why progressive?**: Low earner ($30k/yr → AIME $1,500) gets 80% replacement ($1,200 benefit).
High earner ($160k/yr → AIME $10,000) gets 42% replacement ($4,200 benefit) - bend points reduce replacement % for higher incomes. **Impact**: Bend points adjust annually with wage index (2024 were $1,174/$7,078, 2025 +4.4% increase).
Waiting until 70 → +24% (delayed credits 8%/yr after FRA).
Taking at 62 → -30% permanent reduction.
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- Author: SuperCalc Editorial Team
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- Last updated: 2026-01-13
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This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.