Social Security bend points in action
The Social Security bend points are an important feature of Social Security. Social Security is designed to help those who need it most, and the bend points are how it does that.
Ensuring that everyone receives 90% of the first $1,286 they earn in monthly income back as Social Security means that even low-income individuals will receive a meaningful benefit in retirement. It also means high earners won't receive as much of their average indexed monthly earnings as those with lower incomes.
On average, Social Security replaces about 40% of your pre-retirement earnings. And the higher your income, the lower you'll fall below that level.
Will Social Security bend points affect me?
If you qualify for Social Security benefits, the Social Security bend points will affect how much you receive in retirement.
If you were a low earner, you may not notice the impact of bend points. If your average indexed earnings fall below the first bend point, you'll receive 90% of your pre-retirement income as a benefit at full retirement age.
However, you must have very low earnings (or a short career) to fall below that threshold. Most people will fall in between the two bend points, which equate to average annual earnings between $15,432 and $92,988 in 2026. If that's you, you'll find a significantly lower portion of your income replaced by Social Security. Those earning more will receive an even lower percentage of their pre-retirement income.
However, people who earn more in their careers should plan to save in retirement accounts and other investment accounts to supplement Social Security. It's also important to consider when to start Social Security since claiming later will boost your benefit by 8% per year beyond your full retirement age until age 70.
Higher earners need to do more retirement planning to supplement Social Security. The program isn't designed to replace the income of high earners.
So, now that you know how the bend points affect your potential Social Security benefit, you can figure out how much you'll need to save to supplement your retirement benefit and make the most of your golden years.
