The basics: Here’s what determines your Social Security benefit
In an excellent summary of a sometimes complex topic, this Motley Fool article by Maurie Backman explains how your Social Security benefit is determined. Essentially, as explained in the article, it all boils down to the number of years your worked over your lifetime, your earnings during those working years, and the age at which you claim your Social Security benefits. The first two determine your “primary insurance amount” or “PIA”, which is the base amount you are entitled to at your full retirement age, and the third one (claim age) is what determines how much of your PIA that you will get as a monthly benefit. The article explains each of these things in easy-to-understand terms which provide a clear picture of how your benefit amount is determined. Click here to read more.
Also, if you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public service to help Americans navigate the complexities of this program. Learn more about it here…