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How are Social Security benefits calculated

How are Social Security benefits calculated - Earnings(AIME...

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How are Social Security benefits calculated? First, a worker’s previous earnings are restated in terms of today’s wages to reflect wage growth. Second, earnings for the highest 35 years are averaged and divided by 12 to arrive at Average Indexed Monthly
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Unformatted text preview: Earnings (AIME). • Third, the Social Security benefit formula is applied to AIME to produce the Primary Insurance Amount (PIA), the benefit payable at the Full Retirement Age ( FRA )....
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