The amount of Social Security benefits you receive depends on the following factors:
- How long you work
- How much you make each year
- What age you begin taking your benefits
In this step-by-step series, we’ll show you how these factors affect your benefit amount. There is a three step process to use to calculate the amount of Social Security benefits you will receive.
Step 1: Use your earnings history to calculate your Average Indexed Monthly Earnings (AIME)
Step 2: Use your AIME to calculate your Primary Insurance Amount (PIA)
Step 3: Use your PIA and Adjust it for the Age You Will Begin Benefits
Let's take a detailed look at Step 1: How to Calculate Your Average Indexed Monthly Earnings.