Social Security Calculator

Social SecurityUnderstanding the federal retirement systems can sometimes be complex to say the least.  Yet, it is information we really need to breathe in and understand.  Knowledge is power and we all want the power to live in retirement on our own terms.  Did you know that there is a formula for calculating your Social Security benefit?  It really is quite simple.
• The first step to computing a Social Security benefit is to determine your Primary Insurance Amount or the PIA.  The PIA is the amount you would receive if you worked until age 65 if you were born before 1938.
• If you were born after that time you would need to determine your Average Indexed Monthly Earnings or the AIME.  You do that by:  listing all your Social Security covered earnings from 1951 to the present based on periods applicable to you. Then you adjust those earnings to account for inflation, not to exceed the maximum taxable amount in any year.  We are almost finished, just a couple more steps.
• Select the 35 highest years of your indexed earnings, dropping in a zero for each year in which there were  no covered earnings and then dividing the number of months (420) months in 35 years included into the total of the indexed earnings.
Should we stop here or keep going?  I know by now, you are saying she has sincerely lost it and does she honestly expect us to do that.  We have to add some humor somewhere in understanding the complexities of federal retirement, least we bore from all the details.  No you don’t have to do all of that.  We live in an age where it is much easier for us to determine calculations that will help us in the retirement planning process.
You can always go to your Social Security account on line and look at your work history and Social Security contributions.  You can also use the Retirement Age Calculator at to estimate the approximate Social Security benefits you will receive if you retired at what is considered normal retirement age and had consistent lifetime earnings.
P. S.  Always Remember to Share What You Know.

For more information on your Social Security Benefits – Click HERE

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