Earning $60,000 a year isn’t a lot of money after taxes. However, a person earning that salary for 40 years can receive a decent monthly Social Security check at retirement compared to someone who earned less or had work gaps during their career.
MoneyLion asked a financial expert to do the math on what a 40-year worker earning $60,000 a year could receive per month in Social Security retirement benefits in 2026.
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Social Security Considers Wages for 35 Years
Cody Schuiteboer, president and CEO of Best Interest Financial, explained how he walks clients through the mathematics of Social Security benefits.
“One of the most illustrative cases of this kind is a worker with an average salary of around $60,000 over 40 years of work. First of all, Social Security doesn’t just average annual salaries. Instead, they adjust them for wage inflation over a career period and choose only the 35 best-paid years (note – not all 40),” Schuiteboer said.
In simple terms, Social Security does not count all 40 years equally. It looks at a worker’s highest 35 years of earnings, after adjusting those wages for inflation.
For this type of worker, the average indexed monthly earnings (AIME) would be about $5,000 if they file for retirement benefits at full retirement age (FRA), Schuiteboer said.
How the AIME Formula Works
Social Security uses AIME to calculate a worker’s monthly retirement benefit. The formula has different income levels, known as bend points, that determine how much of a worker’s earnings are replaced. This means Social Security uses AIME to estimate how much a worker will receive each month.
The formula gives lower earners a higher percentage of their income back and higher earners a lower percentage.
According to Schuiteboer, “In 2026, bend points will equal $1,286 and $7,749, respectively.” He explained the math for a worker earning $60,000 a year over a 40-year career.
“First $1,286 of AIME will be replaced at the 90% rate of $1,157. The amount between $1,286 and $5,000 will be replaced at the 32% rate of $1,188,” he said.
For this worker, that means the Primary Insurance Amount, or PIA, would be about $2,345 per month. PIA is the base monthly benefit the worker would receive if they claimed Social Security at FRA, Schuiteboer said.
The Age You Claim Benefits Changes Your Monthly Check
The monthly Social Security benefit amount can change depending on when you claim benefits. Schuiteboer said filing at 62 would lower the benefit to about $1,640 per month. Waiting until age 70 would increase it to roughly $2,910 per month.
If you compare the total benefits over 20 years of retirement, the difference would be about $150,000, Schuiteboer said. That is a number many people do not consider when they claim benefits too early.
Social Security May Not Cover All Retirement Expenses
The average Social Security benefit for retired workers in the U.S. was about $2,081 per month as of April 2026. That means a worker earning $60,000 for 40 years could receive slightly more than the average retired worker benefit at FRA.
However, it’s important to note that this does not mean Social Security will cover every retirement expense during your golden years.
“Social Security will give a person about $24,000-$28,000 per year (pretaxes),” Schuiteboer said. “Retirees’ expenses usually make up about $50,000-$60,000. That means the gap between benefits and cost of living is a number I wish to consider in advance when helping clients prepare for retirement.”
It’s also important to factor in a person’s or couple’s lifestyle, expenses, retirement savings, such as 401(k) plans, IRAs and other income earned from real estate rental income and other investments.
What Retirees Often Overlook
Schuiteboer said many people overlook taxes and Medicare deductions. Of course, taxes differ depending on whether or not you live in a state that taxes Social Security.
“[Taxes and Medicare] are the two main aspects that my clients are often surprised with,” Schuiteboer said.
“Firstly, in some cases, up to 85% of all benefits may become subject to taxation. And secondly, Medicare Part B is usually deducted directly from the benefits (about $185 per month in 2026).”
For workers earning $60,000 a year, Social Security may provide a solid monthly check in retirement. But it is still only one part of retirement income, not a full replacement for a paycheck.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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