Eligibility and indexing
An individual's earnings are always indexed to the average wage level two years prior to the year of first eligibility. Thus, for a person retiring at age 62 in 2023, the person's earnings would be indexed to the average wage index for 2021 (60,575.07). Earnings in a year before 2021 would be multiplied by the ratio of 60,575.07 to the average wage index for that year; earnings in 2021 or later would be taken at face value.
A person's indexed earnings are used to calculate an average indexed monthly earnings (AIME) amount. We use this AIME amount to compute the person's primary insurance amount.
Year of eligibility