Investopedia

Continue to Site »

Indexed Earnings

Filed Under »
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.

Articles Of Interest

  1.

    Maximize Your Social Security Benefits

    The plan's cost of living adjustments can provide protection against inflation.

  2. Avoid The Social Security Tax Trap

    Government benefits can cost you big money! Know the income thresholds before you file.

  3. 10 Common Questions About Social Security

    Find out everything you need to know about this program.

  4. Introduction To Social Security

    You've probably contributed to this fund, but will you reap the benefits? Find out here.

  5. How Much Social Security Will You Get?

    You've been paying in for years - now it's time to find out what the system owes you.

  6. Top 6 Myths About Social Security Benefits

    Misinformation on retirement benefits is common. We'll set the record straight.

  7. Quants: The Rocket Scientists Of Wall Street

    Blend math, finance and computer skills to command a high - and well deserved - salary.

  8. Post-Grad Degrees That Pay The Highest

    A post-graduate degree could be well worth the extra time and expense.

  9. The Highest Paying Jobs In 2013

    With the U.S. economy experiencing mixed fortunes, this article looks at the highest-paying jobs for 2013 and how job-seekers can capitalize.

  10. Top-Paying Contract Positions

    A number of contract positions pay more than their salaried counterparts.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center