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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 ...
Once Social Security figures out your AIME, they'll apply a formula using bend points to determine your primary insurance amount (PIA). This is the monthly benefit you'll receive at your full ...
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]
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 ...
The Average Indexed Monthly Earnings (AIME) is used in the United States' Social Security system to calculate the Primary Insurance Amount which decides the value of benefits paid under Title II of the Social Security Act under the 1978 New Start Method. Specifically, Average Indexed Monthly Earnings is an average of monthly income received by ...
Eligibility for receiving Social Security benefits, for all persons born after 1929, requires accumulating a minimum of 40 Social Security credits. Typically this is accomplished by earning income from work on which Federal Insurance Contributions Act (FICA) tax is assessed, up to a maximum taxable earnings threshold.
The formula involving bend points can be a bit confusing, so an easier way to determine your primary insurance amount is to check your earnings record on the Social Security Administration site ...
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