Social Security uses a three-tier formula to convert your average indexed monthly earnings (AIME) into your monthly benefit at full retirement age. The dollar thresholds between tiers are called bend points, and they update every year with the national average wage index. The percentages (90, 32, and 15) have not changed since the formula started in 1979.
For 2026, the formula is: 90% of AIME up to $1,286, plus 32% of AIME between $1,286 and $7,749, plus 15% of AIME above $7,749. The result is your primary insurance amount (PIA), the benefit you receive at full retirement age.
2026 first bend point
$1,286
90% applies to AIME up to here
2026 second bend point
$7,749
32% applies between bend points
Above second bend point
15%
Of AIME above the second bend point
Year of eligibility lock
Age 62
Bend points lock when you turn 62
A worked example using 2026 bend points
Take a worker with an AIME of $5,000 who turns 62 in 2026. Running their AIME through the 2026 formula:
- 90% of the first $1,286 of AIME, which is $1,157
- plus 32% of the next $3,714 of AIME (from $1,286 up to $5,000), which is $1,188
- plus 15% of any AIME above the second bend point, which is $0 (this AIME is below the second bend point)
Total monthly PIA at full retirement age: $2,346. That is the benefit at FRA. Filing earlier reduces it permanently. Waiting past FRA grows it by 8% per year up to age 70. The full retirement age chart spells out the per-year FRA, and the per-birth-year pages walk through the reduction and delayed credit math for each cohort.
PIA bend points by year, 1979 to 2026
Every published bend point set since the indexed PIA formula started in 1979. Year refers to the year of eligibility (the year a worker turns 62 for retirement, or year of onset for disability or death). Both columns are dollars per month.
| Year of eligibility | First bend point | Second bend point |
|---|---|---|
| 1979 | $180 | $1,085 |
| 1980 | $194 | $1,171 |
| 1981 | $211 | $1,274 |
| 1982 | $230 | $1,388 |
| 1983 | $254 | $1,528 |
| 1984 | $267 | $1,612 |
| 1985 | $280 | $1,691 |
| 1986 | $297 | $1,790 |
| 1987 | $310 | $1,866 |
| 1988 | $319 | $1,922 |
| 1989 | $339 | $2,044 |
| 1990 | $356 | $2,145 |
| 1991 | $370 | $2,230 |
| 1992 | $387 | $2,333 |
| 1993 | $401 | $2,420 |
| 1994 | $422 | $2,545 |
| 1995 | $426 | $2,567 |
| 1996 | $437 | $2,635 |
| 1997 | $455 | $2,741 |
| 1998 | $477 | $2,875 |
| 1999 | $505 | $3,043 |
| 2000 | $531 | $3,202 |
| 2001 | $561 | $3,381 |
| 2002 | $592 | $3,567 |
| 2003 | $606 | $3,653 |
| 2004 | $612 | $3,689 |
| 2005 | $627 | $3,779 |
| 2006 | $656 | $3,955 |
| 2007 | $680 | $4,100 |
| 2008 | $711 | $4,288 |
| 2009 | $744 | $4,483 |
| 2010 | $761 | $4,586 |
| 2011 | $749 | $4,517 |
| 2012 | $767 | $4,624 |
| 2013 | $791 | $4,768 |
| 2014 | $816 | $4,917 |
| 2015 | $826 | $4,980 |
| 2016 | $856 | $5,157 |
| 2017 | $885 | $5,336 |
| 2018 | $895 | $5,397 |
| 2019 | $926 | $5,583 |
| 2020 | $960 | $5,785 |
| 2021 | $996 | $6,002 |
| 2022 | $1,024 | $6,172 |
| 2023 | $1,115 | $6,721 |
| 2024 | $1,174 | $7,078 |
| 2025 | $1,226 | $7,391 |
| 2026 | $1,286 | $7,749 |
Source: SSA Office of the Chief Actuary, PIA Formula Bend Points.
Why the bend point formula matters more than people realize
The 90/32/15 structure makes Social Security strongly progressive. A low-earning worker can have 50% or more of their pre-retirement income replaced by Social Security. A high earner with 35 years at the wage base sees roughly 25% replaced, because most of their AIME falls in the 15% tier. That progressivity is the reason high earners typically need much more outside savings to maintain their pre-retirement lifestyle than low earners.
The bend points also explain why the maximum Social Security benefit tops out at a specific number each year: it is the PIA produced by feeding the maximum AIME (35 years at the wage base, indexed) through that year's bend point formula and then applying the maximum delayed retirement credit by waiting until age 70.
Bend points FAQ
The questions that come up most often about the PIA bend point formula.