AIME (Average Indexed Monthly Earnings)

The SSA does not average your raw pay stubs. Each year of earnings (up to that year’s taxable maximum) is first indexed to national wage growth, so a salary from 1995 counts at what it would represent in today’s wage terms. The best 35 years are then selected, summed, and divided by 420 months. Work fewer than 35 years and the missing years count as zeros, which quietly drags the average down; that is why a few extra working years late in a career can raise a benefit even at a modest salary.

AIME is the input; the bend-point formula (90/32/15) turns it into the primary insurance amount. Your SSA statement at ssa.gov/myaccount computes AIME from your actual record, and the Social Security calculator approximates it from a career-average earnings figure so you can test scenarios.