Primary Insurance Amount - PIA

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Dictionary Says

Definition of 'Primary Insurance Amount - PIA'

A calculation, used in conjunction with the Average Indexed Monthly Earnings (AIME), to determine a person's social security benefits. The Primary Insurance Amount (PIA) is the second step in determining the monthly retirement benefits and is calculated simply by making adjustments to the AIME.
Investopedia Says

Investopedia explains 'Primary Insurance Amount - PIA'

The AIME is is an average of the workers average lifetime earnings indexed for wage growth. The Primary Insurance Amount is found by splitting the AIME into three segments and multiplying specific percentages to each segment and summing up all the parts.

For example, suppose your AIME is $5,000. The PIA calculation would take 90% from the first $744, then 32% from earnings over $744 but under $4483, and lastly 15% of monthly earnings over $4483. In this example your PIA would be $1943.63.
Search results for

'Primary Insurance Amount (PIA)'

  • Top 6 Myths About Social Security Benefits

    http://www.investopedia.com/articles/retirement/08/6-retirement-myths.asp
    ... benefits. Social Security will automatically recalculate your primary
    insurance amount (PIA) every year in which you work. If one ...

  • Create Your Own Social Security Fund

    http://www.investopedia.com/articles/retirement/10/create-your-own-ss-fund.asp
    ... Your benefit payment is also called your primary insurance amount (PIA).
    We'll use the formula for someone retiring in 2010 at age 65. ...

  • How Much Social Security Will You Get?

    http://www.investopedia.com/articles/retirement/08/calculate-social-security.asp
    ... Step 2: Bend Your Benefits The next step is to convert your AIME into a primary
    insurance amount (PIA) by running it through a calculation called "bend points ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/federal-insurance-contributions-act.aspx
    ... benefits. Social Security will automatically recalculate your primary
    insurance amount (PIA) every year in which you work. If one ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths
    ... benefits. Social Security will automatically recalculate your primary
    insurance amount (PIA) every year in which you work. If one ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/federal-tax-rate.aspx
    ... benefits. Social Security will automatically recalculate your primary
    insurance amount (PIA) every year in which you work. If one ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/breakeven-age-calculation.aspx
    ... benefits. Social Security will automatically recalculate your primary
    insurance amount (PIA) every year in which you work. If one ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/lose-early-benefits-work.aspx
    ... benefits. Social Security will automatically recalculate your primary
    insurance amount (PIA) every year in which you work. If one ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/payments-deduction-trust-fund.aspx
    ... benefits. Social Security will automatically recalculate your primary
    insurance amount (PIA) every year in which you work. If one ...

  • Top 7 Social Security Myths: Exposed Slideshow | Investopedia

    http://www.investopedia.com/slide-show/social-security-benefit-myths/inflation-cola-cpi.aspx
    ... benefits. Social Security will automatically recalculate your primary
    insurance amount (PIA) every year in which you work. If one ...

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