Last fact-check: July 27, 2026 · Primary source: Social Security Administration · Methodology explainer, not a personal estimate
Quick answer
SSA wage-indexes earnings, selects the highest 35 years and divides that total by 420 months to create average indexed monthly earnings (AIME). For a person first eligible in 2026, SSA applies 90%, 32% and 15% to the AIME bands separated by $1,286 and $7,749 to calculate the primary insurance amount (PIA).
Key takeaways
- Missing years among the highest 35 enter the average as zeros.
- AIME is an earnings average; PIA is the formula result at normal retirement age.
- Claiming age can later reduce or increase the payment relative to PIA.
From earnings to PIA
| Step | Rule |
|---|---|
| Index earnings | Use average-wage indexing through age 60; later factors equal 1 |
| Select years | Highest 35 indexed years |
| Calculate AIME | Divide the 35-year total by 420 months |
| First 2026 band | 90% of the first $1,286 |
| Second 2026 band | 32% over $1,286 through $7,749 |
| Third 2026 band | 15% over $7,749 |
Step 1: index the earnings record
SSA adjusts earlier covered earnings using the national average wage index. For years before age 60, the factor compares the average wage index for the year the worker reaches 60 with the earlier year’s index. The factor is one for age 60 and later years.
Step 2: calculate AIME
SSA takes the highest 35 indexed earnings years and divides their total by the number of months in 35 years—420—to produce AIME. Fewer than 35 covered years can therefore put zero years into the average.
Step 3: apply the 2026 PIA formula
For first eligibility in 2026, PIA is 90% of the first $1,286 of AIME, 32% over $1,286 through $7,749, and 15% above $7,749. SSA rounds the resulting PIA down to the next lower dime when necessary.
PIA is not necessarily the deposit: SSA defines it as the normal-retirement-age benefit before an early-claim reduction or delayed-retirement increase.
Best way to estimate your own record
Use the estimate in a current my Social Security account and first correct any missing earnings. A simplified hand calculation cannot reproduce record-specific coverage, indexing and claiming adjustments with the same authority.
Related guides
- Check your Social Security estimate
- Retirement eligibility and credits
- Full retirement age and claiming
Official sources
Editorial status: This guide has been checked against the cited official sources. Independent subject-matter review has not been completed. The AIME method, bend points, percentages and rounding rule were checked against the linked SSA sources on July 27, 2026. This is not a personal benefit calculation. The Guru Gazette is independent and is not affiliated with SSA.