Social Security bend points for 2027, and the benefit formula
For people who turn 62 in 2027, Social Security's benefit formula pays 90% of the first $1,340 of average indexed monthly earnings, 32% of the amount up to $8,077, and 15% of anything above. Those two dollar figures are the 2027 bend points, up from $1,286 and $7,749.
SSA describes AIME as an amount that summarizes a person's earnings, with past earnings indexed using the national average wage index.
Primary insurance amount (benefit at full retirement age)
$2,697.20
- 90% of the first $1,340
- $1,206.00
- 32% of the amount from $1,340 to $8,077
- $1,491.20
- 15% of the amount over $8,077
- $0.00
- Starting at 62 (30% less, born 1965)
- $1,888.04
- Waiting until 70 (24% more)
- $3,344.53
Rounded down to the next lower dime, as SSA does. Before cost-of-living increases.
How the formula works
Social Security calls the benefit you would get at full retirement age your primary insurance amount (PIA). It is the sum of three slices of your average indexed monthly earnings: 90% of the first $1,340, plus 32% of the amount over $1,340 and through $8,077, plus 15% of the amount over $8,077. The result is rounded down to the next lower multiple of 10 cents.
The slices are why Social Security replaces a bigger share of pay for lower earners. Every dollar of average earnings below the first bend point adds 90 cents to the benefit; above the second, each dollar adds only 15 cents.
Which year's bend points apply to you
The bend points that count are those for the year you reach 62, become disabled before 62, or die before 62. So the 2027 figures apply to people born in 1965. Someone who turned 62 in 2026 uses $1,286 and $7,749, and so on back through the table.
Where the numbers come from
SSA raises the bend points each year with the national average wage index. For 2027 it took the 1979 bend points of $180 and $1,085, multiplied them by the 2025 average wage index (72,800.33) and divided by the 1977 index (9,779.44), giving $1,340 and $8,077 after rounding.
Bend points in recent years
| Year you turn 62 | First bend point | Second bend point |
|---|---|---|
| 2027 | $1,340 | $8,077 |
| 2026 | $1,286 | $7,749 |
| 2025 | $1,226 | $7,391 |
| 2024 | $1,174 | $7,078 |
| 2023 | $1,115 | $6,721 |
| 2022 | $1,024 | $6,172 |
| 2021 | $996 | $6,002 |
| 2020 | $960 | $5,785 |
From your PIA to your check
Your actual benefit is the PIA adjusted for the age you start and raised by every cost-of-living increase from the year you turn 62. The claiming age calculator applies the age adjustment, and the maximum benefit page shows what the formula produces for someone who always earned the taxable maximum.
Check our work
Every figure on this page was read from these official documents. Follow the links and compare.
- Primary Insurance AmountSocial Security Administration, Office of the Chief Actuary. Read on November 12, 2026.
- Benefit Formula Bend PointsSocial Security Administration, Office of the Chief Actuary. Read on November 12, 2026.
- Benefit Examples For Workers With Maximum-Taxable EarningsSocial Security Administration, Office of the Chief Actuary. Read on November 12, 2026.
- Retirement Age and Benefit ReductionSocial Security Administration. Read on November 12, 2026.