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Inflation’s effects have been especially obvious over the past couple of years, thanks to the soaring prices of groceries, gas, rent, and childcare. But even when inflation is low, it can have an impact on your finances.

“Inflation” means the same amount of money will pay for less in the future, and that change can happen quickly or slowly. Either way, unless your pay raises are keeping pace with the rising cost of living, you can expect your purchasing power to erode. To compensate, you may have to downsize your lifestyle or your long-term goals.

A salary inflation calculator is a specialized tool that can help you understand the impact inflation has on your paycheck, from year to year or over decades. Read on for more information on historic and current inflation rates, how to use an inflation calculator to assess your salary, and how to plan for what’s next.

What Is a Salary Inflation Calculator?

A salary inflation calculator can be used to illustrate the effect inflation has on your hard-earned money. It shows you how much buying power your salary (if unchanged) gained or lost from one year to the next. Or you can use it to gauge how well your salary has held up over a period of several years.

For example, you can enter how much you made in December 2023, and calculate how much more that salary would have to be in December 2024 to maintain the same purchasing power. (Although you might not want to know.) Or you can spread the dates out further, from 2014 to 2024.

There are several different versions of salary inflation calculators online. The U.S. Bureau of Labor Statistics (BLS) provides one that’s both reliable and easy to use here.

Historical Inflation Rates, Compared

To make its inflation calculations, the BLS uses the Consumer Price Index, which measures the overall change in consumer prices based on a representative basket of goods and services over time. The BLS began collecting spending data as early as 1888, and with a few tweaks over the years to update its process, continues to do so today.

The table below shows the annual rate of inflation from 1920 to present. The first column notes the year the data was collected; the second column represents the Consumer Price Index for All Urban Consumers (CPI-U) for that year; and the third column shows the annual percent change/annual rate of inflation.

How to Calculate Salary Adjusted for Inflation

Probably the easiest way to calculate your income’s buying power adjusted for inflation is to use an online inflation calculator. Simply enter the starting year of your choice, your salary in that year (before or after taxes), and the current year. Then the calculator will do the math for you.

For example, if you made $60,000 in December 2018 and you want to see the inflation-adjusted equivalent for December 2024, just plug in those numbers. The calculator will tell you the inflation-adjusted amount is $75,373.46.

What does that mean for you? In a perfect world, companies help valued employees combat inflation with appropriate annual pay increases. If you haven’t had a pay bump since 2018 and you’re ready to talk to your employer about a raise, you might mention that $70,881.69 is the minimum it would take to keep up with the increased cost of living. And if you’re in a field where employers are offering competitive pay and benefits to attract good candidates, you might be able to negotiate for even more.

Recommended: Salary vs. Hourly Pay

What Is Inflation and How Does It Work?

Inflation occurs when the cost of goods and services increases — not in just one or two categories, but across the economy — and consumers’ buying power decreases. As a result, it becomes necessary to earn more just to maintain the same standard of living.

You may wonder if inflation is good or bad. A mild to moderate inflation rate is considered healthy for the economy. It can encourage consumers to buy now rather than later if they expect prices could go higher. Factories may produce more to meet demand from stores that are selling more. Hiring and wages tend to go up. And more people may be motivated to invest their money to grow it for the future.

The Federal Reserve’s target inflation rate is 2% over the long term, and the U.S. hadn’t strayed far from that so-called “sweet spot” for decades — until recently. A number of factors can cause inflation to increase to an uncomfortable level, and thanks to a pandemic-related perfect storm (supply chain issues, stimulus payments, soaring gas prices, and an employment rollercoaster), that’s where America landed a few years ago.

Even at that moment, the U.S. economy wasn’t anywhere close to hyperinflation, when prices rise uncontrollably, typically at rates of more than 50% per month.

How Is Inflation Calculated?

The BLS and the Bureau of Economic Analysis (BEA) both track inflation, and use similar methods and formulas. But because the data they use comes from different sources, their results aren’t the same.

•   The BLS calculates Consumer Price Index (CPI) inflation by tracking what Americans are actually buying. The government uses the CPI to make inflation-related adjustments to certain federal benefits, such as Social Security.

•   The BEA calculates Personal Consumption Expenditure (PCE) inflation using information reported by the companies that sell goods and services instead of the consumers who purchase them. The Federal Reserve focuses more on PCE inflation, but also considers other economic data when setting monetary policy.

Recommended: Should I Sell My House Now or Wait?

How Inflation Impacts You

High inflation can have an immediate impact on your budgeting and spending, and no one likes that much. But your feelings about whether inflation is good or bad may depend on where you are in life and how your overall finances are affected.

•   If you’re a first-time homebuyer, for example, higher prices and higher mortgage rates could push your dream out of reach.

•   People with high credit card debt can be negatively affected by inflation. If, during a period of high inflation, the Federal Reserve raised the federal funds rate in an effort to cool the economy, borrowers could expect the annual percentage rate (APR) on their revolving credit to increase.

•   Savers, on the other hand, may benefit if the Fed bumps up interest rates and financial institutions offer a higher annual percentage yield (APY) on savings accounts, money market accounts, and certificates of deposit.

•   That scenario may sound like especially good news to risk-averse retirees looking for a safe investment. But retirees on a fixed income are typically among the first to feel the painful squeeze of inflation.

•   So are small business owners, who often have to deal with higher costs for goods and services, employees who want cost-of-living increases, and customers who aren’t happy when their prices go up to cover those expenses.

•   Homeowners may not like the high prices they encounter when shopping for goods and services when inflation is high. But on the plus side, inflation may push up the value of their home and their home equity. And if they have a fixed-rate mortgage, they may find some comfort in knowing they’re paying less for that loan than they did when they took it out.

Recommended: Biweekly Money-Saving Challenge

The Takeaway

Inflation can be calculated in different ways, depending on the organization and its purpose. For instance, the Bureau of Labor Statistics (BLS) measures inflation by the Consumer Price Index (CPI), which tracks household purchases. The information is used to make adjustments to federal benefits such as Social Security. Using a salary inflation calculator can also help consumers understand how the rising cost of living might affect their finances and budget better.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What will $100,000 be worth in 10 years with inflation?

It’s difficult to predict what $100,000 could be worth 10 years from now without knowing what inflation will look like in the future. But say the average inflation rate levels out to a moderate 3% over the next decade. If that’s the case, it will take about $134,392 in 2035 to have the same buying power as $100,000 has in 2025.

How much would $50,000 in December 2018 be worth in December 2024 with inflation?

If you had $50,000 in December 2018, it would take about $62,811.22 to have the same purchasing power in December 2024.

What is $120,000 in 2000 worth today?

If you made $120,000 in 2000, you’d have to make $204,688 to have the same buying power today.

Photo credit: iStock/Prostock-Studio

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

SORL-Q125-031

The average salaries for trade jobs by state ranges from about $50,000 to just over $76,000 per year. As student debt reaches an all-time high and automation is shaking up many industries, more and more people are turning to the trades. With the benefit of less education debt, and a lower likelihood of replacement by machines, a job in the trades holds out hope for a steady salary and job security.

But what’s the average pay, and how does it vary state by state? Read on to find out more about the advantages and disadvantages of trade jobs.

What Is a Trade Job?

A trade job is typically a hands-on role that doesn’t require a college degree. Instead, tradespeople gain experience in a specialty program or through training on the job.

Many think of a trade job in terms of plumbing or construction, but trade jobs also encompass roles such as pilot and real estate broker.

Recommended: Why Raise the Minimum Wage?

Pros and Cons of a Trade Job

Like any job, working in a trade comes with a fair share of benefits and drawbacks.

Pros include:

•   Cost of education. Since most trades don’t require a four-year degree, tradespeople may be less likely to take on student loan debt before beginning their career.

•   Security. Trades require special knowledge and experience, and are less likely to be automated. The skilled labor required for many trades jobs promises security down the line.

Cons of a trade job are:

•   Physical toll. Many, but not all, trades jobs require strength and mobility, which can take a toll over time. Trade jobs often require employees to be out in the field, as opposed to working from home. Demanding construction or maintenance jobs can lead to injury and discomfort if you aren’t careful.

•   Safety. Some trades jobs are more dangerous than others. Mistakes on the job can lead to serious bodily trauma.

Recommended: Biweekly Money-Saving Challenge

Average Salary for Trade Jobs by State

Trade jobs span multiple industries and skill sets, which lead to a wide variation in average pay. Some may be salaried, while others are hourly, and each will have different demands. Here is the average salary for trade jobs by state, courtesy of Zip Recruiter.

Recommended: More High-Paying Jobs by State

10 Top High-Paying Trade Jobs

Trade jobs usually don’t require a four-year degree, but many can net a coveted $100,000 salary. Here are the top 10 highest paying trade jobs by median annual salary, according to the Bureau of Labor Statistics (BLS):

1. Nuclear Power Reactor Operator

Median Annual Salary: $121,240

Job Growth Outlook (10-year): -6%

Job Description: Operate and monitor nuclear power systems.

Education Requirements: High school diploma

2. Transportation, Storage, and Distribution Managers

Median Annual Salary: $111,870

Job Growth Outlook (10-year): 9%

Job Description: Coordinate the shipping, storage, and transportation of materials based on business or government regulation. According to the BLS, this is among the trades that make the most money.

Education Requirements: High school diploma

3. Elevator Mechanic

Median Annual Salary: $102,420

Job Growth Outlook (10-year): 6%

Job Description: Install, maintain, and repair elevator and escalator systems.

Education Requirements: High school diploma

4. Power Plant Operator

Median Annual Salary: $100,890

Job Growth Outlook (2020-2030): -8%

Job Description: Control pipelines and distribution of gas or other forms of power from utility companies.

Education Requirements: Associate degree

5. Radiation Therapist

Median Annual Salary: $98,300

Job Growth Outlook (10-year): 3%

Job Description: Monitor and distribute radiation therapy to patients with cancer or other diseases. Because of frequent interaction with patients, this is not a job for antisocial people.

Education Requirements: High school diploma

6. Nuclear Medicine Technologist

Median Annual Salary: $92,500

Job Growth Outlook (10-year): -1%

Job Description: Provide radiation imaging or treatment to patients. This is one of a handful of high-paying medical jobs that don’t require a four-year degree, much less medical school

Education Requirements: Associate degree

7. Dental Hygienist

Median Annual Salary: $87,530

Job Growth Outlook (10-year): 9%

Job Description: Examine dental patients and administer oral hygiene, including routine cleanings.

Education Requirements: Associate degree

8. Electrical Line Installer and Repairer

Median Annual Salary: $85,420

Job Growth Outlook (10-year): 8%

Job Description: Install, maintain, and repair electrical systems, including poles, as well as transmission towers.

Education Requirements: High school diploma. Depending on the training you get before stepping into this field, this could offer a good entry-level salary.

9. Diagnostic Medical Sonographer, Cardiovascular Technologist and Technician

Median Annual Salary: $80,850

Job Growth Outlook (10-year): 11%

Job Description: Operate medical equipment to create images or complete medical testing.

Education Requirements: Associate degree

Recommended: What Is a Good Entry-Level Salary?

10. Subway and Streetcar Operator

Median Annual Salary: $77,370

Job Growth Outlook (10-year): 3.5%

Job Description: Drive public transport systems including street cars and subway lines. Roles can include handling cash fares. Because these roles don’t come with many physical demands, they could be a good option for steady work after retirement.

Education Requirements: High school diploma

Recommended: Budget Planner and Spending App

The Takeaway

Landing a job with a competitive salary doesn’t necessarily require a college degree. Though the average pay for trade jobs will vary by role and location, they can lead to rewarding careers with good job security. The ten highest paying trade jobs are in a range of industries, from medicine to transportation to nuclear power. Earning a six-figure salary may be possible as well, which could allow you to budget well for your financial goals.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is the highest-paying trade job?

Currently, the highest-paying trade job is a nuclear power plant operator, with an average annual salary of $120,000. This shift work requires operators to monitor the status of power plants, ensuring everything runs smoothly. This role typically requires a high school diploma, certification, and on-the-job training.

What are the easiest high paying trades?

The easiest high paying trade will vary based on an individual’s strengths. But some trade jobs have a lower barrier to entry than others. That, coupled with a high predicted job growth rate, could make them easier roles to be hired into.

The field of ultrasound technology is in demand, with a predicted 19% growth rate in the next decade. Paying $62,500 annually on average, the role requires a certificate and training, but not a bachelor’s degree.

Which trade is in highest demand?

Solar energy installation is growing rapidly, and installers need only technical training to qualify. The role pays $37,000 on average a year, and the demand is expected to explode by over 50% in the next ten years. Because the job entails working with machinery alone or with a small crew, this could also be an attractive job for introverts — as long as they have no fear of heights.

Photo credit: iStock/Portra

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SORL-Q125-028

The average salary for a doctor in California is $239,200 according to the latest data from the Bureau of Labor Statistics. Understanding the average salary of a profession can help you make a variety of important decisions, from what field you want to enter to where you want to live and work.

Here’s a closer look at how much medical doctors make a year in California, regional differences in salary, and the top-paying medical specialities in the state.

What Is the Average Salary for a Medical Doctor in California?

The average salary of a physician in the state of California is $239,200 per year, according to data from the U.S. Bureau of Labor Statistics (BLS). This figure doesn’t account for a physician sign-on bonus, which some doctors receive. Interestingly, California is squarely in the middle when it comes to average physicians’ salaries. The average salary in California lags behind a dozen states, including New Mexico, Wyoming, Colorado, and Connecticut.

Though many consider anything more than $100,000 a good salary, the fact that California’s pay is not top tier may come as a surprise to some. However, there are some possible explanations. For one, California spends the most on Medicaid among U.S. states. Medicaid — and Medicare, for that matter — both reimburse physicians at rates lower than their usual fees. Doctors who are seeing a lot of elderly or low-income individuals may see their incomes reduced.

Note that early in your career as a doctor, while you’re in your residency or fellowship, you’ll likely make considerably less than you will later in your career. You may need to budget wisely to get by on a medical resident’s salary.

You may also want to consider using a spending app, which can help you set financial goals and a budget and track where your money goes.

How to Become a Doctor in California

Doctors are health care professionals who are charged with meeting with patients, diagnosing their conditions, and managing their care plans. They perform tests and prescribe medications. And they must coordinate with a range of other health care professionals, including other doctors, nurses, and emergency medical technicians.
That’s a lot of responsibility, and as a result, it takes a lot of training to become a doctor.

First, you’ll need to complete a bachelor’s degree in a field that relates to medicine, such as premedicine, biology, or biochemistry.

Next, you’ll need to go to medical school, where you will receive classroom and practical training to advance your knowledge in the medical field. Medical school is typically a four-year program. While in school, you’ll complete the first and second parts of the U.S. Medical Licensing Examination (USMLE). The average cost of medical school can be high, typically running more than $60,000 a year at private institutions.

When you graduate from medical school, you’ll enter a residency program that helps you choose a medical specialty. These programs usually last three years (but may be as long as seven), and under the supervision of an experienced physician, you’ll work full time as a resident doctor. You’ll complete your residency by passing the third and final part of the USMLE.

After your residency, you can choose to complete a fellowship that gives you further training in the specialty you’ve chosen. Though fellows tend to make more than residents, their salary isn’t as high as new doctors. The good news is, there are ways to budget on a medical fellowship salary.

Finally, you’ll need to obtain a California medical license from the Medical Board of California. You can renew your license every two years, which requires 50 hours of continuing medical education.

Recommended: What Is the Average Medical School Debt?

Reasons to Become a Doctor

Becoming a doctor can involve a lot of challenges, but it can also be immensely rewarding work. Here are a few reasons you might become a doctor:

•   To help others: Doctors diagnose and treat medical conditions, helping to save and improve patients’ lives. They are often involved in ongoing treatment, ushering patients down the path to recovery. Being a physician is a people-centric profession that involves working closely with patients and their families to explain medical conditions and treatment options.

•   To work in the sciences: If you’re interested in a variety of scientific fields, from biology to chemistry to anatomy to pharmacology, being a doctor is a way to explore these subjects while also helping others.

•   To find purpose: The responsibility toward patients and coworkers and the ability to better people’s health and well-being often provide doctors with a sense of satisfaction and meaning in their work.

•   To become a teacher: Becoming a doctor requires a lot of schooling and ongoing training. Doctors may pass on this knowledge by educating patients on how to lead healthier lives, educating medical students in teaching hospitals, and supervising residents.

•   To have job security: The job outlook for physicians is relatively low, with the field expected to grow 3% through 2031. That said, there are still 23,800 openings for physicians projected each year, according to BLS data.

•   To make a good salary: The annual average wage for all workers in the United States is $59,228, according to the BLS — quite a bit lower than the $239,200 average annual pay for physicians in California. That means a new doctor’s budget could be easier to wrangle than other workers starting their careers, but then again, a M.D. may have considerable educational debt.

Recommended: What Is The Average Salary in the U.S.?

Best-Paying Medical Doctor Jobs in California

The medical speciality you pursue in California will have a big impact on your salary. According to BLS data, here are some of the highest-paid physicians in California:

Psychiatrist

Psychiatrists help diagnose and treat mental disorders. Unlike psychologists, they are allowed to prescribe drugs for medical treatment.

Mean salary: $256,930

Obstetricians and Gynecologists

OBGYNs provide medical care related to childbirth and diagnose and treat diseases of the female reproductive organs. They also specialize in women’s health issues like hormone problems, infertility, and menopause.

Mean salary: $278,660

Anesthesiologist

Before, during, or after surgery, anesthesiologists administer anesthetics (which reduce sensitivity to pain) and analgesics (which act as pain relievers).

Mean salary: $339,470

Cardiologists

Cardiologists diagnose and treat conditions of the cardiovascular system.

Mean salary: $423,450

Radiologists

Radiologists use medical imaging techniques, such as x-rays, MRIs, and ultrasounds to diagnose and treat diseases and injuries.

Mean salary: $353,960

Pathologists

A pathologist helps diagnose diseases by running tests on organs, tissue, and bodily fluids, such as blood.

Mean salary: $270,560

Surgeons

Surgeons are medical doctors that may have to perform surgery, a procedure that physically changes a patient’s body.

Mean salary: $409,665

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The Takeaway

Being a doctor can be fulfilling, as it allows you to help people through work in the medical sciences. It can also be monetarily rewarding, and understanding average salaries can help you make decisions about where you want to live and what you want to specialize in. Though income varies by speciality, the average salary for physicians in California is $239,200 per year. Whatever you may earn, tracking your money and budgeting wisely can be important steps to financial wellness.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is a doctor’s yearly salary in California?

In California, a doctor can expect to make $239,200 per year on average, according to data from the U.S. Bureau of Labor Statistics.

What is the highest-paying medical specialty?

Among the highest-paid doctors in California are surgeons and cardiologists.

Who earns more: a dentist or a doctor?

In California, doctors tend to make more than dentists, who earn $170,910 per year on average.

Photo credit: iStock/Drazen Zigic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SORL-Q125-048

Early retirement age for Social Security is 62. While you can receive benefits then, you will not collect as much as if you wait until full retirement age, which is either 66 or 67, depending on the year you were born. If you delay claiming your benefits until age 70, you can receive still more.

Throughout your working career, you pay employment taxes that help fund Social Security, which provides income when you retire. In 2024, approximately 65 million people received Social Security benefits, totaling more than $1.5 trillion. Whether you choose to retire at 62 or later is a very personal decision with several contributing factors.

Here, learn more about Social Security benefits, early retirement age, and the advantages and disadvantages of filing for your benefits early and late.

What Are Social Security Benefits?

Social Security is a social insurance program created in 1935 to pay workers an income once they take retirement at age 65 or older. When people talk about Social Security benefits, they’re referring to a monthly payment that replaces a portion of a worker’s pre-retirement income.

The amount you receive depends on how much you earned and paid in Social Security taxes during the 35 highest-earning years of your career. Generally speaking, the higher your income, the bigger your monthly check will be — up to a point. Also important is the age at which you claim benefits. Typically, the later you receive benefits, the higher your monthly check will be.

Note that retirees aren’t the only ones who are eligible for Social Security benefits. People with qualifying disabilities, surviving spouses of workers who have died, and dependent beneficiaries may also qualify for benefits.

Recommended: When Will Social Security Run Out?

At What Age Can You Collect Social Security?

When the Social Security program began, the full retirement age (FRA) was 65, and that’s still what many in the U.S. think of as the average retirement age. However, as life expectancy in the U.S. has increased, the Social Security Administration (SSA) has adjusted the FRA accordingly.

The chart below illustrates FRA by year of birth.

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What Is the Early Retirement Age for Social Security?

You can choose to claim retirement benefits as early as age 62. However, SSA will reduce your benefit by about 0.5% for every month you receive benefits before your FRA. For example, if your full retirement age is 67 and you file for Social Security benefits when you’re 62, you’d receive around 70% of your benefit.

On the other hand, if you wait to claim benefits after your FRA, you’ll accrue delayed retirement credits. This increases your benefit by a certain percentage for every month you delay after your FRA. For example, if your full retirement age is 67 and you delay receiving benefits until age 70, you’ll get 124% of your monthly benefits. Note that the benefit increase stops when you turn 70.

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Can You Claim Social Security While You’re Still Working?

When you claim your Social Security benefits, the SSA considers you retired. However, you can continue working after retirement and receiving benefits at the same time, though they may be limited.

If you’re younger than FRA for the entire year, the SSA will deduct $1 from your payment for every $2 you earn above an annual limit. In 2025, that limit is $23,400. In the year you reach full retirement age, the SSA will begin deducting $1 for every $3 you make above a different earnings limit — $62,160 in 2025.

No matter their work history, your spouse has the option to claim Social Security benefits based on your work record. That benefit can be up to 50% of your primary insurance amount, which is the benefit you’d receive at FRA. Your spouse can begin receiving spousal benefits at age 62, but they will receive a reduced benefit.

Pros and Cons of Claiming Social Security Early

The main advantage of filing for Social Security early is that you’ll have access to retirement funds sooner. This can be a boon to individuals who need extra money to get by each month. To help you maximize every last dollar, consider using a spending app to create budgets, track spending, and monitor bills.

The main disadvantage of filing early is that you may permanently reduce your monthly benefit amount. This could be a factor to keep in mind as you determine whether you’re on track for retirement.

So how do you decide when to file for your benefits? Consider your “break-even point.” This is the age at which receiving a delayed higher benefit outweighs claiming benefits earlier.

Here’s an example of how that works. Let’s say your FRA is 67 and your annual benefit is $24,000. If you claim your benefit at age 62, your benefit drops to $16,800 a year. If you delay until age 70, your benefit would be $29,760 a year.

By adding up each year’s worth of benefits and comparing them across different potential retirement ages, you find your break-even point. So in that last example, claiming your benefit at FRA breaks even with early filing at age 78. If you expect to live until this age or longer, you may consider filing for Social Security at full retirement age. Delaying until age 70 breaks even with claiming at FRA at age 82. So if you expect to live until 82 or longer, you may consider delaying your benefits.

Recommended: How Can I Retire Early?

The Takeaway

Early retirement starts at age 62; that is the earliest age you can receive Social Security income. Your monthly payment amount is determined by how much you’ve earned during your working career and the age at which you claim Social Security benefits. You’re eligible to receive your full benefits when you reach full retirement age (FRA). If you file before then, the monthly payment will be reduced. If you file later, your monthly payment can increase, up to a point. Consider your short- and long-term financial needs carefully before deciding when to claim Social Security so you can budget appropriately.

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FAQ

Can I take Social Security at age 55?

You cannot claim Social Security benefits at age 55. The earliest you can file for benefits is age 62.

What happens to my Social Security if I retire at 55?

If you retire at 55, you will have to wait seven years, until age 62, before you are eligible to claim early Social Security benefits. Retiring early may also affect the size of your benefit if you are leaving work in your top-earning years.

What is the average Social Security benefit at age 62?

The average monthly Social Security retirement benefit in December 2024 was about $1,834.43 for those filing at full retirement age. Filing early at age 62 would reduce that benefit by 30% to $1,284.10.

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SORL-Q125-047

If you’re struggling with a student loan problem like loan forgiveness or repayment challenges, and you’re getting nowhere on your own, it could be time to consider legal assistance.

A lawyer with expertise in student loan-related legal issues may be able to help you get the answers and action you need to resolve your situation.

Hiring an attorney may not make sense in some situations. And if you’re wondering, how much does a student loan lawyer cost?, there’s the expense to consider. But if you’re tired of spending time and energy on a problem that seems unsolvable, read on to find out how a student loan lawyer may be able to help.

When Should I Seek Legal Advice for Student Loans?

A student loan attorney can explain complex rules so you can understand your rights and responsibilities as a borrower, whether you have federal or private student loans. If your situation requires it, they can also advocate for you with your loan servicer or lender, the U.S. Department of Education (DOE), or even go to court with you.

Here are some issues a lawyer might be able to help with:

Public Service Loan Forgiveness (PSLF)

Public Service Loan Forgiveness is a program to help those working in public service for the government and nonprofit organizations achieve forgiveness for their federal student loans. But there are many stipulations to meet, which may trip up those trying to apply as well as borrowers already in the program.

An experienced student loan lawyer can help ensure your compliance with the requirements of the often-confusing PSLF and other student loan forgiveness programs, and assist you in avoiding potential missteps. This might include reviewing your records for errors, helping correct mistakes, and following up on missing documentation such as employment certifications. Not all PSLF issues are fixable, but if you feel as though your application was unjustly denied, for example, you might decide to hire a student loan lawyer to help rectify the problem.

Total and Permanent Disability (TPD) Discharge

If you received a TPD discharge, you don’t have to repay your federal student loans or complete a Teacher Education Assistance for College and Higher Education (TEACH) Grantservice obligation, if you have one. But you’ll need to provide proof that your physical or mental disability severely limits your ability to work, both now and in the future.

A student loan lawyer can help you prepare your TPD discharge application and assemble the appropriate documentation to meet all the criteria. If your application is denied, an attorney can help if you choose to appeal.

Loan Servicer Errors

A lawyer may be able to pinpoint a loan servicer’s mistake — such as a payment that wasn’t properly applied to your account — that’s keeping you from getting student loan relief. A student loan attorney could also serve as your representative to get the error fixed.

Forbearance and Deferment Decisions

An attorney can help you determine if you qualify for federal student loan forbearance or deferment, assist with your application and documentation, and dispute a denial if you feel it’s incorrect.

If you don’t qualify for forbearance or deferment, but you can’t manage your current loan payments, an experienced student loan lawyer can help evaluate various options for lowering your monthly amount. You may be eligible for an income-driven repayment (IDR) plan that bases your monthly federal loan payments on your discretionary income and family size, for example.

Another option is to refinance student loans. With refinancing, you replace your current private or federal loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate and more favorable terms, which could lower your payments. Keep in mind, though, that if you refinance federal loans with a private lender, you’ll forfeit federal benefits like forgiveness and IDR.

Recommended: Refinancing Student Loans as an International Student

Collections and Garnishment Mitigation

A lawyer can offer negotiation assistance if your student loan is in default, meaning you’ve missed a series of payments on it, and the loan is being sent to collections. An attorney could also be helpful if you’re facing wage garnishment or some other legal action as the result of unpaid student loans. Options an attorney might suggest for you to consider include loan consolidation or rehabilitation.

Recommended: Paying for College Tuition

How Can I Find a Student Loan Lawyer?

If and when you decide it’s time to consult with a student loan lawyer, it’s important to find someone with the appropriate expertise and credentials to deal with your particular issue.
Ways to search for a student loan attorney include:

•   Contacting state and local bar associations for referrals to lawyers in your area.

•   Asking friends, colleagues, and family members for referrals. Or, if you’ve worked with an attorney with a different specialty in the past, he or she may be able to suggest someone.

•   Using an online database. The National Association of Consumer Advocates (NACA) website allows users to do a free attorney search based on practice specialty and location. Websites like Nolo and Avvo also offer attorney databases to consumers who need legal help.

Many lawyers offer a free consultation, so you can use that as an opportunity to make sure you’ve found the right fit. This is a good time to ask specific questions about the attorney’s credentials, costs, how and how often you should plan to communicate about your case, and what outcome you might expect based on similar cases. You can also ask if the person you meet with will be representing you personally, or if someone else might be assigned to your case. Finally, be sure to ask the attorney for references.

When you’re scheduling your first appointment, it’s a good idea to inquire about what documents and other information you should bring with you. Having this information organized and ready to go could help speed up the process and possibly lower your costs.

How Much Does a Student Loan Lawyer Cost?

The amount you pay for a student loan attorney can vary depending on several factors. Some lawyers bill by the hour, while others may charge a preset fee based on the complexity of your case and the services required. Where you live and the lawyer’s level of expertise might also affect your costs. Generally speaking, your bill could range from $1,000 to $10,000 or more.

Once you have an idea of what the overall cost will be, you can determine if it makes more sense to get legal help or continue pursuing a solution on your own. Ask yourself: Could hiring an attorney save you money in the long run? Would handing the reins to someone with more experience, contacts, and knowledge allow you to move on to other goals? Or would taking on more debt upfront to pay a lawyer lead to even more financial and emotional stress?

When you’re researching and interviewing student loan lawyers, keep your budget in mind and be clear about your concerns. Some attorneys may offer a payment plan, or they might be able to refer you to other, less expensive options that can provide help.

Other Ways to Get Student Loan Help

If you need help with student loan debt, but you don’t have the money to pay a student loan lawyer, here are some more affordable options to consider:

•   Legal clinics: You may be able to find free or low-cost legal help through a local organization or nearby law school program. You can find a list of legal aid resources at USA.gov.

•   Guidance online: Borrowers can get free virtual student loan help from the American Bar Association Free Legal Answers or from the Institute of Student Loan Advisors.

•   Credit counseling: If you’re feeling overwhelmed by your student debt, a debt counseling organization, such as the National Foundation for Credit Counseling (NFCC), might be able to help you work with your lender or loan servicer to create a repayment plan. The NFCC’s services aren’t free, but they may be more affordable than hiring a lawyer.

•   Ombudsman assistance: If you submitted a complaint about a federal student loan and believe the response was wrong or incomplete, you can contact the Federal Student Aid Ombudsman Group. If you have an unsolved dispute with a private loan lender, the Consumer Financial Protection Bureau (CFPB) may be able to help.

The Takeaway

Researching and pursuing student loan forgiveness, relief, and repayment options can be confusing and frustrating. If you feel as though you’ve hit a brick wall with your efforts to clear up a student loan issue, you may find it makes sense to hire a student loan attorney to evaluate your problem and help seek a solution.

It’s important to weigh the benefits vs. the costs of getting professional help. An experienced lawyer who specializes in student loan debt may be able to provide options you didn’t know about. And that assistance might help you get back on track with your federal or private student loans. But if you can’t afford a student loan lawyer, or decide that legal help doesn’t make sense for you, there are other ways to help manage your payments, including income-driven plans, credit counseling, and student loan refinancing.

The important thing to keep in mind is that you have options.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

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SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.