Social Security income: Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Social Security benefits can automatically increase each year based on increases in the Consumer Price Index. Including a spouse increases your Social Security benefits by 1.5 times your individual estimated benefit. Please note that this calculator assumes that you have only one working spouse. Benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit. If you are a married couple, and both spouses work, you may need to run the calculation twice -- once for each spouse and his or her respective income. This calculator provides only an estimate of your benefits.
The calculations use the 2008 FICA income limit of $102,000 with an annual maximum Social Security benefit of $26,220 per year for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum FICA salary for nearly your entire career. You would also need to begin receiving benefits at your full retirement age of 66 or 67 (depending on your birth date). Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.
Current age: Your current age.
Age of retirement: Age you desire to retire.
Household income: Your total household income. If you are married, this should include your spouse's income.
Expected salary increase: Annual percent increase you expect in your household income.
Expected rate of inflation: What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2007. The CPI for 2007 was 2.4%, as reported by the Minneapolis Federal Reserve.
Are you married?: Check this box if you are married. Married couples have a higher maximum Social Security benefit than single wage earners.