Page 6 - 2019 Social Security Cheat Sheet
P. 6
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
Avg. Annual Income Avg. Annual Income Avg. Annual Income
IF AGE 62 IF AGE 62 IF AGE 62
$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. $3,611/mo.
