How To Calculate Social Security Benefits

how to calculate your social security benefits

Understanding the steps to calculate social security benefits may not be the easiest thing in the world to do, but here’s my attempt to demystify the process.

There are two basic steps to determining your monthly benefits. The first step is computing your average indexed monthly earnings, or AIME. The second step, which incorporates the AIME, is to determine your primary insurance amount, or PIA. The PIA is the basis needed to calculate social security benefits that are paid to you when you retire.

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