The Social Security Administration (SSA) examines your highest 35 years of earnings to calculate your Average Indexed Monthly Earnings (AIME). Applying the 2026 formula, your Primary Insurance Amount (PIA) is determined using bend points and percentages of your AIME.
Category: Social Security
How it works, the issues for today and tomorrow.
It is perfectly logical that a portion of Social Security benefits be taxable
Social Security and pensions aren’t just about what you pay in; they’re about what you get out. Most of the benefits you receive aren’t paid for by you alone. It’s a mix of employer contributions, taxes, and interest.
End taxes on Social Security?
Social Security is designed to be a safety net, not a personal savings plan. Despite taxes into the system, the majority of recipients receive more in benefits than they paid in, highlighting its role as a universal insurance program.
Coping with inflation in retirement, what’s the plan?
Inflation poses a significant financial stress on retirees, yet awareness and planning are crucial to managing it effectively. The impact of inflation on fixed incomes is often misunderstood, with Social Security generally keeping pace, though specifics depend on individual circumstances.
