The National Average Wage Index and Calculating Social Security Benefits - AMAC & CNBC
Lorie Konish explains the National Average Wage Index (AWI) in this informative piece. The AWI has increased every year from 1951 to 2008 with the exception of 2009 when it declined by 1.5% due to the financial crisis. This lowered benefits for those who became eligible for Social Security in 2011. The same was expected to happen when the Covid-19 pandemic prompted a dramatic drop in wages in 2020 over 2019. That also sparked concerns that those ready to apply for Social Security would see lower benefits as a result. However, new data from the Social Security Administration shows that the national average wage index for 2020 was 2.83% higher over 2019. Full piece here.