You probably already know that your Social Security retirement benefits will be calculated based on your lifetime earnings history. The more money you make while working, the more you will receive from Social Security. There is a direct correlation between how much you pay in Social Security taxes and how much your monthly benefit payments are.
But what happens if you earn a low income while working or only work for a few years? Or perhaps you only worked part-time for most of your life. Will you have a meager benefit amount? Thankfully, there is a minimum Social Security benefit amount. Keep reading to learn how much this amount is and whether you might qualify for Social Security’s special minimum benefit.
How Social Security Benefits Are Calculated
Before diving into the details of Social Security’s special minimum benefit, it helps to understand how the Social Security Administration calculates benefits. You likely already know that you need a certain number of work credits to qualify for benefits. The more Social Security tax you pay, your benefits will be higher. Here is how the SSA calculates your benefit amount.
Step 1: Find Your Average Indexed Earnings
First, you must find your average indexed monthly earnings from your earnings record. To do this, you must index each year’s earnings to current values using the wage indexing tables provided by the Social Security Administration. This indexing process is partly used to help account for inflation. For example, if you earned $50,000 in 2010, that amount might be worth $58,000 at today’s value.
Step 2: Calculate your Average Indexed Monthly Earnings (AIME)
Once you have indexed each year’s earnings, you will want to average the highest 35 years of earnings. Take the sum of the 35 highest values and divide by 420. If you do not have 35 years of earnings, you must use a zero for any years in which you had no earnings. Once you find this average, you will have your AIME.
Step 3: Apply Social Security Bend Points
After calculating your AIME, you must apply the Social Security bend points to obtain your primary insurance amount (PIA). Your PIA is 90% of the first $1,1226 of your AIME plus 32% of your AIME between $1,226 and $7,391 plus 15% above $7,391. This sum is your primary insurance amount, which you will receive if you start your benefits at full retirement age.
Step 4: Adjust Based on Retirement Age
Finally, you might need to adjust your benefit amount based on your retirement age. If you start your benefits early, you will see a reduction of roughly 0.5% for each month that you start early. Similarly, waiting past full retirement age will allow you to accrue delayed retirement credits and increase your benefit amount by about 0.5% each month. Those credits will max out at age 70, so there is no need to wait longer than that to begin your benefits. You can use Social Security’s benefits calculator to get an estimate of how much your benefits will be.
KEY TAKEAWAYS
- The SSA implemented a “special minimum” benefit for low-income earners. It is based on the years worked, not the earnings amount.
- Over the years, the average wage has increased more than the “special minimum” amount, so most people receive more from the standard retirement benefits.
- The special minimum amount starts at $52 monthly after 11 work credits and increases to $1,093 monthly with 30 work credits.
Social Security’s Special Minimum Benefit
So, is there a minimum Social Security benefit? The answer is yes. To account for low-income earners, Social Security has something called the “special minimum benefit.” This benefit helps those who worked for many years but did not necessarily earn high wages. Using the standard Social Security calculation will result in a meager benefit amount for these individuals.
Therefore, the special minimum benefit is calculated based on years of coverage instead of income. This means that people who receive the special minimum benefit will receive a payment amount that depends on how many years they have in their work history instead of how much they earned while working.
Small Monthly Minimum
So, just how much is the minimum benefit? Unfortunately, the minimum benefit can still be relatively low if you do not have many years of work history. Most people see a higher benefit amount when using traditional calculations.
- The minimum Social Security retirement benefit is approximately $52 a month if you have a minimum of 11 years of work history.
On the other hand, the maximum Social Security benefit is pretty significant. It is $5,108 per month in 2025.
The table below shows the amounts of the special minimum benefit based on your years of coverage.
Must read articles related to Social Security Benefits
- Find out how much you can earn while on Social Security.
- What can I do to get the maximum Social Security benefit?
- Three easy steps to apply for Social Security benefits.
- When does Social Security recalculate benefits?
- What is the annual cost-of-living (COLA) increase this year?
Social Security Special Minimum Benefit Amounts Table
| Years of Coverage | Primary Insurance Amount | Family Maximum Amount |
|---|---|---|
| 11 | $52 | $80 |
| 12 | $107 | $162 |
| 13 | $162 | $245 |
| 14 | $216 | $326 |
| 15 | $271 | $408 |
| 16 | $326 | $491 |
| 17 | $381 | $573 |
| 18 | $435 | $655 |
| 19 | $490 | $738 |
| 20 | $545 | $819 |
| 21 | $600 | $902 |
| 22 | $654 | $984 |
| 23 | $710 | $1,067 |
| 24 | $765 | $1,149 |
| 25 | $819 | $1,231 |
| 26 | $875 | $1,314 |
| 27 | $929 | $1,396 |
| 28 | $984 | $1,478 |
| 29 | $1,039 | $1,561 |
| 30 | $1,093 | $1,642 |
Remember that the amounts mentioned above apply to Social Security retirement benefits. These amounts do not apply to SSI or SSDI benefits. SSI benefits do not require a work history, so those payments never depend on your earnings or your work years. Social Security disability insurance benefits require a specific number of work credits, and those benefits will be calculated based on your average earnings while working.
Who Qualifies For The Special Minimum Benefit?
So, which retirees will qualify for the minimum Social Security payment? Average wage earners usually rely on the traditional benefit calculation, but low-income individuals might benefit from the Social Security minimum payment.
Limited Participants
In recent years, the minimum benefit provision has changed so much that almost no one receives it anymore. The minimum calculation relies on cost-based inflation or the consumer price index, whereas the traditional benefit formula relies on wage-based indexing or wage growth.
The traditional method almost always leads to a higher benefit, especially for full-time employees. As of 2020, only about 35,000 Americans still received the special minimum amount. However, here is how you can qualify if this provision benefits you.
Eligibility Requirements
First, you will need at least 11 years of coverage to qualify for the minimum payment. A “year of coverage” is any year you have worked and paid enough Social Security taxes into the Social Security trust funds. The other eligibility criteria are the same as those for standard Social Security benefits. You must be at least 62 years old to start receiving your benefits and be a U.S. citizen or permanent resident.
TIP
A spouse or ex-spouse may still claim Social Security spousal benefits even if the spouse is receiving the “special minimum” benefit.
The Minimum Social Security Benefit At Age 62
Remember that retired workers will see a decrease in their benefit amount if they decide to start their benefits early. The same applies to the special minimum benefit. So, what is the minimum Social Security benefit at 62? We already learned that some workers with only 11 years of coverage would receive a monthly payment of approximately $52. However, this assumes that the worker starts receiving benefits upon reaching full retirement age.
Reduction Percentage
Those who begin their benefits at age 62 will see a 30% reduction in their benefit payments. This reduction applies to all who take Social Security early – including regular retirement benefits and the special minimum PIA. So, assume your PIA would be the maximum special minimum of $1,093. If you start receiving your benefits at age 62, you will see a 30% reduction and end up with a benefit amount of only $765.
The same applies to the other end of the spectrum. Assume you only have 11 years of coverage and will receive the minimum benefit of $52. Starting your benefits at age 62 means you would only see a monthly payment of $36.
Need for Additional Income
As you can see, this amount would be well below the poverty level, so you would need some additional sources of retirement income to make ends meet. If you are on Medicare, your Part B premium would take your entire Social Security check plus additional money.
Minimum Spousal Benefits & Survivor Benefits
Spousal and survivor benefits for those receiving the special minimum are calculated like those receiving standard retirement benefits. Even if you do not have a work history of your own, you can qualify for benefits based on your spouse’s or ex-spouse’s work history. Spousal benefits are typically 50% of the primary beneficiary’s benefit amount. Several strategies can be used to maximize your Social Security spousal benefits. Survivor benefits usually equal 100% of the deceased spouse’s benefit amount.
Spousal and survivor benefits are subject to the “family maximum” benefit. The family maximum is usually 150% to 180% of the primary insurance amount. However, you can see the table earlier in this article for the family maximum when it comes to the minimum benefit. Spousal and survivor benefit recipients will also be entitled to annual cost-of-living adjustments, just like primary beneficiaries.
The Bottom Line
Social Security’s special minimum benefit still exists, although fewer people receive it than ever before. The standard calculation for benefits will almost always result in a higher payment than the minimum benefit amount.
When planning your retirement, you should be aware that the special minimum benefit is still available; however, your primary insurance amount based on your earnings record is likely to be higher.
The minimum benefit is based on the number of years of coverage you have, not how much money you earned during those years.
Frequently Asked Questions
Yes, the minimum Social Security benefit typically changes each year. This benefit is usually adjusted by the same percentage as the annual cost-of-living adjustment.
Historically, wage growth has outpaced the increase in the price index. Therefore, the benefit amount you see from your earnings record usually grows faster than the adjustments to the minimum benefit amount. This is why fewer people receive the minimum benefit each year.
You must work for at least 11 years to qualify for the minimum Social Security benefit. The longer you work, the higher your payment will be. Once you reach 30 years of work, you will max out your potential minimum payment. This payment amount is based on the years you worked and paid Social Security taxes, not the amount you earned while working.
Yes, you can get Social Security if you have worked for 10 years. You need at least 10 years of work credits to qualify for Social Security benefits. So, what is the minimum Social Security benefit for 10 years of work? In that case, your benefit will be calculated using your earnings record.
You need at least 11 years of coverage to qualify for Social Security’s special minimum benefit. However, the benefit amount calculated using your earnings record will likely exceed the special minimum benefit.
The amount you need to make changes each year. In 2024, you need to make just under $19,000 yearly to count as a year of coverage. You will need at least 11 years of coverage to qualify for the minimum payment from Social Security. However, remember that the minimum payment is becoming less common. Most people can earn more Social Security by using the standard calculation based on their earnings record instead of relying on the minimum payment.
You can find a Social Security Administration office near you by using our SSA office locator and searching for your closest location.
