Indexed Earnings

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Dictionary Says

Definition of 'Indexed Earnings'

A worker's past wages that have been adjusted for changes in the overall wage level in the economy. Indexed earnings are generally used in computing pension-type benefits. Since wage levels generally rise over time, a worker's earnings in the past must be adjusted so they can be measured against what the worker would have made at the present wage level.
Investopedia Says

Investopedia explains 'Indexed Earnings'

Social Security benefits in the U.S. are calculated using average indexed monthly earnings, a type of indexed earnings. Indexing earnings allows the Social Security Administration to award benefits which account for changes in standard of living. If earnings were not indexed in this manner, then retirees would receive much lower benefits that would be out of proportion to the true buying power of their earnings in prior years. 
Search results for

'Indexed Earnings'

  • How Much Social Security Will You Get?

    http://www.investopedia.com/articles/retirement/08/calculate-social-security.asp
    ... It assumes the worker has worked from 1971 to 2010. Year, 1. Taxable Earnings, 2.
    Wage Index Factor, 3. Indexed Earnings. 2005, $38,256, 1.1017, 42,147. ...

  • Top 6 Myths About Social Security Benefits

    http://www.investopedia.com/articles/retirement/08/6-retirement-myths.asp
    ... If one of your 35 highest indexed-earnings years is attained after you start
    benefits, then you will be credited with a higher benefit. ...

  • Create Your Own Social Security Fund

    http://www.investopedia.com/articles/retirement/10/create-your-own-ss-fund.asp
    ... 90% of the first $761 of his/her average indexed monthly earnings, plus; 32% of
    his/her average indexed monthly earnings over $761 and through $4,586, plus; ...

  • Curbing The Effects Of Inflation

    http://www.investopedia.com/articles/05/061605.asp
    ... your local bank. They are sold at face value and grow with inflation-indexed
    earnings for up to 30 years. Federal income tax on ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths
    ... If one of your 35 highest indexed-earnings years is attained after you start
    benefits, then you will be credited with a higher benefit. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/federal-tax-rate.aspx
    ... If one of your 35 highest indexed-earnings years is attained after you start
    benefits, then you will be credited with a higher benefit. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/breakeven-age-calculation.aspx
    ... If one of your 35 highest indexed-earnings years is attained after you start
    benefits, then you will be credited with a higher benefit. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/lose-early-benefits-work.aspx
    ... If one of your 35 highest indexed-earnings years is attained after you start
    benefits, then you will be credited with a higher benefit. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/payments-deduction-trust-fund.aspx
    ... If one of your 35 highest indexed-earnings years is attained after you start
    benefits, then you will be credited with a higher benefit. ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/federal-insurance-contributions-act.aspx
    ... If one of your 35 highest indexed-earnings years is attained after you start
    benefits, then you will be credited with a higher benefit. ...

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