How are Social Security benefits primarily computed?

Social Security benefits are primarily computed using the average indexed monthly earnings during the 35 highest-earning years. This approach ensures that the benefits reflect a worker's lifetime earnings, adjusted for inflation to account for changes in the economy over time. The calculation involves indexing the individual's earnings to account for wage growth, which helps maintain the purchasing power of the benefits.

By considering the highest-earning years, the Social Security formula provides an equitable system that rewards those who have consistently higher earnings over a significant part of their working life. This methodology helps to balance benefits fairly for those who may have changed jobs or experienced periods of lower income.

While some options consider various aspects of a beneficiary's earnings history, only the method of averaging the highest 35 years offers a structured and fair calculation that reflects actual contributions to the Social Security system, ensuring that those who have worked longer or earned more are able to receive benefits that correlate appropriately with their contributions.