Project your Social Security benefits with the parameters of Section 20.6.

Social Security benefits Section 20.6

Calculation of benefits for individuals retiring in a given year is done in four steps:

1. The series of your taxed annual earnings (using the cap) is compiled. The status of this series is shown in your annual SS statement.

2. An indexing factor series is compiled for all past years. This series is used to account for the time value of your lifetime contributions.

3. The indexing factors are applied to your recorded earnings to arrive at the Average Indexed Monthly Earnings (AIME).

4. Your AIME is used to determine the Primary Insurance Amount (PIA), which is your monthly retirement annuity.