Social Security benefits provide partial replacement income for qualified retirees and disabled individuals, as well as for their spouses, children, and survivors.

Social Security provides a foundation of income on which workers can build to plan for their retirement and social insurance protection to workers who become disabled and to families whose breadwinner dies.

**Formula to calculate social security benefit.**

As in 2021, we calculate the social security benefits by adding all of the following;

- 90% of the first $996 in AIME
- 32% of the amount of AIME between $996 and $6,002
- 15% of the amount equal to or greater than $6,002 in AIME

AIME is the Average indexed monthly earnings.

**Example:**

Suppose your AIME is $ 5,000, calculate your social security benefit if you are 66 years old which is the full retirement age.

Therefore for the first $ 996 dollars, we calculate 90%.

**= 90% x 996**

**= 896.40**

Since the amount remaining is $4004, we will be needed to calculate the 32% of it.

**= 32% x 4004**

**= 1,281.28**

Then we add them together,

**= 896.40 + 1,281.28**

**= 2,177.68**

Therefore, your social benefits are $ 2,177.68.