Social Security Bend Points: Defined, Formula, Calculations

By Adam Levy – Updated Mar 14, 2025 at 11:28 PM

Key Points

Bend points determine how Social Security benefits are calculated using income brackets.
Lower earners receive a higher percentage of pre-retirement income from Social Security.
Higher earners need to supplement Social Security with other retirement savings.

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Social Security cards and money. — Image source: Getty Images.

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Data source: Social Security Administration.

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It's worth noting that the maximum average indexed monthly earnings included in the Social Security formula is $13,689 in 2025. The number is capped because the government only taxes up to a certain threshold of income for Social Security. If you earn above that amount, you'll only pay Medicare tax on any amount above that threshold. So, you won't receive any additional benefits for income earned above that level.

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About the Author

Adam Levy is a contributing Motley Fool stock market analyst covering technology, consumer, and financial stocks and how policy, economic, and consumer trends shape personal finance, Social Security and retirement savings. Before The Motley Fool, Adam was a financial advisor at Edward Jones. He studied finance and electrical engineering at Carnegie Mellon University.

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