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Lifetime Earnings

A claimant's benefit is a percentage of his average lifetime earnings. Low-income workers receive a higher percentage of their average lifetime earnings than those in the upper income brackets. A worker with average earnings can expect a retirement benefit that replaces about 40 percent of his or her average lifetime earnings.

Fast Facts

  • The Social Security law includes a complex formula for determining retirement benefits through the use of a claimant's record of lifetime earnings ranging up to and including the month before a proposed retirement date.
  • The annual Social Security Statement contains a complete earnings history along with estimates of benefits payable at age 62, full retirement age (now age 65), and at age 70.

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