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The formula for calculating your PIA is based on the average indexed monthly earnings, or AIME, in your 35 highest-earning years after age 21, up to the Social Security wage base.
If you don't have 35 years' worth of earnings, Social Security will use zeros for the missing years to calculate your average. Lastly, Social Security will apply a formula using bend points to ...
Social Security's benefit formula provides 90% of average indexed monthly earnings (AIME) below the first "bend point" of $791/month, 32% of AIME between the first and second bend points $791 to $4781/month, and 15% of AIME in excess of the second bend point up to the Ceiling cap of $113,700 in 2013. [172]
The Social Security Administration calculates an individual’s benefit amount by considering an individual’s lifetime earnings and then adjusting actual earnings to account for changes in the ...
Because it takes more than one year to fully collect such data, and because some people have January birthdays, the age 62 calculation done in 2006 must be based on the most recent data which is the 2004 national average wage. By law, all covered workers who attain age 62 in 2006 must be treated the same with respect to wage indexation so the ...
Here's what you'd need to earn in order to be among the elite few with a $58,476 annual income from Social Security. ... calculation formula. ... based on your salary and waited until 70 to claim ...
For those without 35 years' worth of earnings, Social Security uses zeros for the missing years to calculate your average. From there, Social Security applies a formula using bend points (which ...
If You Worked Only 20 Years: Social Security will factor in 15 zero-income years, which has an even more dramatic effect. With nearly half of your calculation based on zero-earning years, the ...
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