AIME — Average Indexed Monthly Earnings
AIME is a monthly average of your highest earning years, adjusted for wage growth. Social Security uses it to figure out your SSDI or retirement payment.
Official source: ssa.gov
AIME stands for Average Indexed Monthly Earnings. It's the number Social Security uses to measure your lifetime earnings — adjusted for inflation — before calculating your monthly benefit.
Here's how it works: SSA takes your highest 35 years of earnings, adjusts each year's income to reflect today's dollars (this is the "indexed" part), adds them all up, and divides by 420 months (35 years × 12 months). The result is your AIME.
Your AIME is then run through a formula using "bend points" to produce your Primary Insurance Amount (PIA) — the base monthly benefit you'd receive if you claimed at your Full Retirement Age.
**Why it matters practically:** - Every year of zero earnings or very low earnings you include in your 35 pulls your AIME — and your benefit — down - Working additional years to replace zeros or low-earning years raises your AIME and increases your benefit - You can see your projected AIME and estimated benefit in your Social Security Statement at ssa.gov/myaccount
In real life
- SSA picks a worker's top earning years, adjusts them for inflation, then averages them to get AIME.
- After working for 30 years, Sarah's highest earning years are used to calculate her AIME, which helps determine her Social Security check.
- When John applies for disability, his AIME is figured out using his best paychecks over his career to set his benefit amount.
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Frequently asked questions about AIME
What is Average Indexed Monthly Earnings (AIME)?+
AIME is a monthly average of your highest earning years, adjusted for wage growth. Social Security uses it to figure out your SSDI or retirement payment.
Who qualifies for AIME?+
Adults under full retirement age who have a qualifying medical condition expected to last 12+ months and who have earned enough recent work credits.
How do I apply for AIME?+
Apply online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. There's no cost to apply. Official forms and instructions: https://www.ssa.gov/oact/cola/Benefits.html.
Where can I get help?+
Run the SSDI Filing Success Score to check your readiness, then the SSDI Benefit Estimator to size up your monthly payment. Local Social Security field offices can also help you apply at no cost.
Source: ssa.gov