Exhibit 3.
Social Security Benefits: Average Indexed Monthly Earnings (AIME) & Primary Insurance Amount (PIA)
16.
Primary
Insurance 3,000
$0.15/$ $8,479, $2,598
Amount ($$)
$0.32/$
2,000
$0.90/$
$4,980, $2,073
1,000
$826, $743
0
0
1,200 2,400 3,600 4,800 6,000 7,200 8,400
Avg Indexed Monthly Earnings (SS)
Refer to Exhibit 3. Consider someone who is single and age 67, eligible for full benefits, with an AIME of
$7,000. What is the monthly benefit?
a. $3,564
b. $2,376
c. $5,283
d. $2,598
17.
Refer to Exhibit 3. Consider someone age 67 whose has a spouse with a limited work history. This person is
eligible for full benefits and has an AIME of $7,000. What is this person's monthly benefit?
a. $3,564
b. $2,376
c. $5,283
d. $2,598
18.
Which of the following provides insurance against earnings loss due to retirement?
a. disability insurance
b. Social Security
c. workers' compensation
d. Medicare
3