2023 Social Security Cheat Sheet - Flipbook - Page 9
2019 REVISED EDITION:
Social Security Cheat Sheet
Calculating Your Monthly Benefit Amount
The formula is used by Social Security Administration to adjust prior year
earnings based on the Average Wage Index (AWI) to determine Average
Indexed Monthly Earnings (AIME). From AIME, 3 “Bend Points” are applied to
determine the Primary Insurance Amount (PIA), which is the basis for starting
Social Security benefit calculations. These bend points change each year
unless the AWI is flat or negative. For 2019, the formula starts with AIME and
applies 90% of the first $926, plus 32% of the next $4,657, plus 15% of any
additional amount, subject to the maximum taxable wages for each
contribution year. The amounts below provide estimates based on
hypothetical income amounts only and do not include calculations for future
value or COLA. Benefits may be reduced based on a number of factors,
including filing age, government pensions and actual work history.
Estimated Monthly Benefits Based on Filing Age & AIME
$50,000
$75,000
$100,000
IF AGE 62
IF AGE 62
IF AGE 62
Avg. Annual Income
Avg. Annual Income
Avg. Annual Income
$1,402/mo.
$1,817/mo.
$2,052/mo.
IF AGE 66
IF AGE 66
IF AGE 66
$1,870/mo.
$2,423/mo.
$2,736/mo.
IF AGE 70
IF AGE 70
IF AGE 70
$2,468/mo.
$3,199/mo.
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$3,611/mo.
