Understanding Social Security And Pension Benefits
How Much Will I Get From Social Security? Navigating the complicated terrain of Social Security can be a daunting task for many. Added to that is the question that troubles a lot of future pensioners: ‘How much will I get from Social Security?’ In essence, the answer depends on various factors such as your age, your earnings, and when you decide to start taking benefits. Your Social Security payout is based on your primary insurance amount (PIA), which in turn is based on your lifetime earnings. To calculate the PIA, the Social Security Administration calculates your average indexed monthly earnings (AIME) during the 35 years in which you earned the most. With this figure, they apply a formula to determine your basic benefits. Your age when you apply for Social Security benefits also influences how much you will receive. If you retire at your full retirement age, you will get…