I was born in 1951
How can I calculate my PIA and does the amount increase if I don’t start claiming benefits until age 70
From age 66 to 70 I have continued to work and my wages exceed the maximum social security wage amount
thank you

Hi,

First you'd need your full Social Security covered earnings history, and then you need to wage-index each year prior to the year in which you turned age 60. The indexing factors for people born in 1951 can be found here: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605938. You then need to divide the sum of the highest 35 wage indexed earnings years by 420 to determine your averaged indexed monthly earnings (AIME). Note that any covered earnings years from age 60 on can still be used, but those earnings aren't indexed.

You can then determine your initial primary insurance amount (PIA) by applying the applicable percentages to your AIME. The bend points and percentages for someone born in 1951 are as follows:
90% of the first $791, 32% of the amount from $792 - $4768, and 15% of any amount above $4768.

For example, if your AIME was $4868 you would calculate your initial PIA as follows:
90% of $791 = $711.90; plus
32% of $3977 (i.e. $4768 - $791) = $1272.64; plus
15% of $100 (i.e. $4868 - $4768) = $15.

Thus, your initial PIA would be $1999.54 (i.e. $711.90 + $1272.64 + $15), which would be rounded to $1999.50. That would be your PIA in 2013 when you were first eligible for retirement benefits, but you would then need to apply all of the Social Security cost of living increases since 2013 in order to determine your current PIA.

Once you have your current PIA, you'd then need to apply any delayed retirement credits (DRC) you've earned by waiting past your full retirement age (FRA) to claim benefits. DRCs are calculated at 2/3rds of 1% per month, or 8% per year. So, in order to determine your age 70 rate you would multiply your current PIA by 1.32.

If you'd rather not do all of that math, you could instead use the benefit calculator that's included in our software (https://maximizemysocialsecurity.com/purchase). The software would also allow you to fully analyze the filing options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry