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The basic Social Security benefit is called the primary insurance amount (PIA). Typically the PIA is a function of average indexed monthly earnings (AIME). We determine the PIA by applying a PIA formula to AIME.
The Social Security benefits formula is what the government uses to determine your primary insurance amount (PIA). That's the benefit you're entitled to if you sign up at your...
We illustrate the calculation of retirement benefits using two examples, labeled case A and case B. In each case, the worker retires in 2024. Case A, born in 1962, retires at age 62. Case B, born in 1958, retires at his normal (or full) retirement age.
The Social Security benefits formula is designed to replace a higher proportion of income for low-income earners than for high-income earners. To do that, the formula uses what are called “bend points," which are adjusted for inflation each year.
The Social Security Benefits Formula. Social Security calculates your benefits by tallying up the earned income you made in your top earning years and applying some simple arithmetic....
Second, they apply a formula to that monthly average to determine your primary insurance amount (PIA) — the monthly benefit you’re entitled to receive if you claim it at your full retirement age. That's 66 and 6 months for people born in 1957 and two months later for someone born in 1958.
This online Social Security benefits calculator estimates retirement benefits based on your age, retirement date and earnings. See what you might receive.
Calculate your average indexed monthly earnings during the 35 years in which you earned the most. Apply a formula to these earnings and arrive at your basic benefit, or “primary insurance amount.”. This is how much you would receive at your full retirement age — 65 or older, depending on your date of birth.
Calculate your Average Indexed Monthly Earnings (AIME) Apply your AIME to the benefit formula to determine primary insurance amount (PIA) Adjust PIA for filing age. Social Security Calculation Step 1: Adjust all earnings for inflation. So let’s jump in with calculating your AIME.
The calculator provides an estimate of your monthly Social Security retirement benefit, based on your earnings history and age. Our tool also helps you see what percentage of daily expenses your payments can cover and how you can increase your payment by waiting to collect.