Benefit Fact Sheet
The "Primary Insurance Amount" (PIA) is the benefit (before rounding down to next lower whole dollar) a person would receive if they elected to begin receiving retirement benefits at their normal retirement age. At this age, the benefit is neither reduced for early retirement nor increased for delayed retirement.
An individual's Social Security retirement or Social Security benefits are based upon the individual's time and earnings in Social Security-covered employment and the age at which they leave the labor force.
Social Security benefits are typically computed using “average indexed monthly earnings (AIME)." This average summarizes up to 35 years of a worker's earnings. The Social Security Administration applies a formula to this average to compute the PIA. The PIA is the 
basis for the benefits that are paid to an individual.
The formula used to compute the PIA, called the PIA formula, reflects changes in general wage levels, as measured by the national average wage index. The PIA is the sum of three separate percentages of portions of average indexed monthly earnings. The portions depend on the year in which a worker attains age 62, becomes disabled before age 62, or dies before attaining age 62.
The Normal Retirement Age (NRA) is the age at which retirement benefits (before rounding) are equal to the PIA. The table below shows how NRA varies by year of birth for retirees.
|
Year of Birth |
Age |
|
1937 and prior |
65 |
|
1938 |
65 and 2 months |
|
1939 |
65 and 4 months |
|
1940 |
65 and 6 months |
|
1941 |
65 and 8 months |
|
1942 |
65 and 10 months |
|
1943-1954 |
66 |
|
1955 |
66 and 2 months |
|
1956 |
66 and 4 months |
|
1957 |
66 and 6 months |
|
1958 |
66 and 8 months |
|
1959 |
66 and 10 months |
|
1960 and later |
67 |
Notes:
1. Persons born on January 1 of any year should refer to the NRA for the previous year.
2. For the purpose of determining benefit reductions for early retirement, surviving spouses whose entitlement is based on having attained age 60 should add two years to the year of birth shown in the table.
For more information regarding Social Security PIA, please refer to:
https://www.ssa.gov/oact/COLA/Benefits.html
PIA Formula:
https://www.ssa.gov/oact/cola/piaformula.html
Social Security Quick Calculator:
https://www.ssa.gov/OACT/quickcalc/
Social Security Calculator for Retirement, Disability and Survivor Benefits Estimate:
https://www.ssa.gov/benefits/retirement/planner/AnypiaApplet.html
To estimate your Social Security benefit based on your earnings:
https://www.ssa.gov/prepare/plan-retirement