Average indexed monthly earnings
Certified Financial Planner glossary · Certified Financial Planner
Definition
The wage-indexed average of a worker’s highest thirty-five years of covered earnings, divided by 420.
Average indexed monthly earnings in plain English
Social Security statements flash a Primary Insurance Amount, but the engine underneath is quieter. Average indexed monthly earnings take a worker's highest thirty-five years of covered earnings, wage-index them, and divide by 420 (35 years times 12 months). That AIME then runs through bend points to produce the PIA. If a stem gives career earnings and asks for the benefit inputs, build AIME first; skipping indexing or using the wrong year count breaks the rest.
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