The Primary Insurance Amount is the retirement benefit before adjustments for post-retirement inflation, retiring before the Normal Retirement Age or retiring after Normal Retirement Age but before age 70. Once this amount is arrived at, it is very easy to determine a person's monthly Social Security retirement check.
The PIA is based on the Average Index Monthly Earnings (AIME) as applied to an inflation adjusted formula. That formula is determined in such a way that those who paid more Social Security tax will receive a higher benefit. However, there is a certain bias built in for lower earning workers. In other words, if person A earned twice as much as person B, person B will receive more than 50% of person A's benefit assuming they are both the same age and retiring on the same date.
These are the steps to compute the PIA:
The bend points usually change each year. You would use the ones that are for the first year when you could take your Social Security benefits early. Currently, that year is the year in which you turn 62.
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