Average Indexed Monthly Earnings
Updated: 19 January 2025
What Does Average Indexed Monthly Earnings Mean?
The Average Indexed Monthly Earnings (AIME) is a calculation used to determine Social Security benefits, including disability benefits.
A person’s AIME is calculated by first adding together the amounts they earned in their top 35 years of earnings. This total is then divided by 35 to get an average yearly income, which is further divided by twelve to obtain the average indexed monthly earnings.
Insuranceopedia Explains Average Indexed Monthly Earnings
In general, the more a person has earned, the higher their disability benefits will be. This is particularly significant for disability insurance, as it provides a benefit to replace the policyholder’s income when they become disabled.
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