What Average Indexed Monthly Earnings (AIME) Is and Why It Matters

Average Indexed Monthly Earnings (AIME) is the number Social Security uses to calculate how much your monthly SSDI benefit will be. It takes your highest 35 years of earnings, adjusts them for wage inflation, and converts them to a monthly figure. The Social Security Administration then plugs that number into a formula to arrive at your actual benefit amount.

AIME is not the same as your average earnings. It is a specific calculation that the SSA performs using only your covered work history — the years you paid Social Security taxes. If you worked fewer than 35 years, the SSA counts the missing years as zero, which lowers your AIME. If you worked more than 35 years, only your highest-earning 35 years count.

Understanding AIME matters because it is the foundation of your benefit. A higher AIME means a higher monthly payment. Unlike some other Social Security programs, SSDI does not adjust your benefit based on your age when you became disabled or when you start collecting. Your AIME is locked in based on your work history up to the year you became disabled.

Key Takeaways

  • AIME is calculated from your highest 35 years of earnings, adjusted for inflation to the year you turned 60 (or became disabled, if earlier).
  • Years you did not work count as zero earnings, so fewer than 35 years of work will lower your AIME and your benefit amount.
  • The SSA converts your AIME to a monthly benefit using a bend-point formula that replaces a higher percentage of lower earnings than higher earnings.
  • You can request a detailed earnings record from Social Security to verify the years and amounts they have on file before your claim is decided.
  • Self-employment income, military service credits, and non-covered work (such as some government jobs) may affect your AIME calculation in specific ways.

How the SSA Selects and Indexes Your Earnings

The SSA starts by pulling your complete earnings record from the Social Security tax system. For each year you worked, they have the amount you earned and paid taxes on (up to the annual earnings cap, which changes every year). They then select your highest 35 years of earnings.

Next, they index those earnings — meaning they adjust them for wage inflation. The indexing year is typically the year you turned 60, or the year you became disabled if that was earlier. The SSA takes the average wage for the entire country in the indexing year, divides it by the average wage in each of your work years, and multiplies your actual earnings by that ratio. This brings all your past earnings into the same dollar value, so earnings from 1990 are not artificially lower than earnings from 2020 just because wages were lower then.

After indexing, the SSA adds up your highest 35 indexed years and divides by 420 (the number of months in 35 years). That quotient is your AIME, rounded down to the nearest whole dollar.

If you worked fewer than 35 years, the missing years are counted as zero. For example, if you worked 30 years, the SSA indexes those 30 years, adds them up, and divides by 420 — not by 360. This means each missing year reduces your AIME by roughly 1/420th of your total indexed earnings.

The Bend-Point Formula That Converts AIME to Your Monthly Benefit

Once the SSA has your AIME, they do not straightforward pay you that amount each month. Instead, they explore a bend-point formula that replaces a higher percentage of lower earnings than higher earnings. This formula is why two people with very different work histories can end up with very different benefit amounts.

The bend points change every year based on wage growth. For 2024, the formula works roughly like this: you receive 90 percent of the first $1,174 of your AIME, plus 32 percent of your AIME between $1,174 and $7,078, plus 15 percent of your AIME above $7,078. (These numbers are examples; the actual 2024 bend points are set by the SSA and published in the Federal Register.)

This structure means a person with an AIME of $2,000 receives a much higher replacement rate than a person with an AIME of $5,000. The formula is intentionally progressive — it provides a larger safety net for workers with lower lifetime earnings.

Your Primary Insurance Amount (PIA) is the result of this bend-point calculation. Your monthly SSDI benefit is your PIA, with no reduction for age (unlike retirement benefits) and no increase for waiting longer to claim.

What Counts and What Does Not Count Toward AIME

Only earnings on which you paid Social Security tax count toward AIME. This includes wages from W-2 employment and net self-employment income reported on Schedule SE of your tax return. Earnings are capped each year — in 2024, only the first $168,600 of earnings count (the cap changes annually). Anything you earned above that cap in a given year does not appear in your AIME calculation.

Some types of work do not generate Social Security credits and do not count toward AIME. Federal employees hired before 1984 who are covered by the Civil Service Retirement System (CSRS) instead of Social Security do not have those years count. Some state and local government employees are also not covered. Railroad workers have their own system. If you have non-covered work, the SSA may reduce your SSDI benefit under the Government Pension Offset or Windfall Elimination Provision, depending on your situation.

Military service credits granted by the SSA (typically $300 per quarter of service before 1968) do count toward AIME if you meet other requirements. Unpaid work, volunteer hours, and informal caregiving do not count, even if they were essential to your family or community.

How to Review Your Earnings Record Before Your Claim

The SSA maintains a record of your reported earnings for every year you worked. You can request a detailed Social Security Statement (also called an earnings record) online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. The statement shows the year-by-year earnings the SSA has on file.

Reviewing this record before you file for SSDI is important because errors can lower your AIME. If you see a year where you earned more than what is listed, or a year that is missing entirely, you can request a correction. The SSA will ask for documentation — typically a W-2, tax return, or pay stub — to support the correction. Corrections can take several months, so it is worth doing this before you file your SSDI claim if possible.

If you became disabled before age 60, the SSA will use the year you became disabled as your indexing year, not age 60. This means your earnings record as of that year is what counts. If you continue to work after becoming disabled (which is possible under SSDI work incentives), those later earnings do not improve your AIME or your benefit amount.

How AIME Interacts with Other SSDI Rules

Your AIME determines your benefit amount, but other rules can affect what you actually receive. If you are under your full retirement age and also working, your benefit may be reduced by the earnings test — though this applies mainly to retirement beneficiaries, not SSDI beneficiaries. SSDI has different work incentive rules that allow you to earn money without losing your entire benefit.

If you have a family, your AIME also affects what your dependents (spouse, children) can receive. Family members may be may have access to to benefits based on your record, and the total family benefit is capped at a percentage of your PIA (usually 150 to 180 percent). A higher AIME means a higher family maximum, but it also means the available pool is divided among more people.

AIME does not change after your SSDI claim is approved, even if you continue to work or earn income. Your benefit is fixed based on your work history at the time you became disabled. This is different from how some other programs calculate ongoing support.

Frequently Asked Questions

Can I increase my AIME after I start receiving SSDI?

No. Your AIME is calculated based on your earnings record up to the year you became disabled (or age 60, whichever is earlier). Earnings after that date do not improve your AIME or your monthly benefit amount. However, you may be able to work under SSDI work incentives without losing your entire benefit.

What happens to my AIME if I have gaps in my work history?

Gaps count as zero earnings. If you worked 25 years, the SSA counts 10 years of zero earnings when calculating your AIME. This lowers your average and reduces your benefit. The more years you worked, the less impact any single gap has on your final number.

Does self-employment income count the same way as wages?

Yes, but only your net self-employment income (after business expenses) counts. You report this on Schedule SE of your tax return. The SSA uses the same indexing and bend-point formula for self-employment income as for wages, though self-employment tax rates differ from payroll tax rates.

If I worked in multiple countries, does that income count toward AIME?

Only earnings covered by the U.S. Social Security system count. If you worked in another country and paid into that country's social security system, those earnings do not count toward your U.S. AIME. Some countries have totalization agreements with the U.S. that allow credits to be combined, but this is complex and varies by country.

Can the SSA make a mistake in calculating my AIME?

Yes, and it happens. Errors in your earnings record, indexing, or the bend-point calculation can occur. You can request a detailed explanation of how your AIME was calculated and ask the SSA to review it. If you believe there is an error, you can file a request for reconsideration or appeal through the SSA's formal appeal process.