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in todays video im gonna show you how to calculate social security benefits and there are only three simple steps step one you calculate the averaged index monthly earnings or aim step two you calculate the primary insurance amount or pia by applying the aim to the correct benefit formula and then step three you calculate the final benefit by reducing or increasing the pi based on your filing age lets break these down individually so you can see just how easy this is the very first step in the benefits calculation is to determine what your average earnings were over your career when the social security administration is making this determination they want to look at all your historical earnings but they dont just look at your raw earnings instead they add an inflation factor so the earnings will be caught up to todays value the older your earnings the higher the inflation factor and special note here they only add this inflation factor through age 59. any earnings at 60 or beyond