A baby boomer born in 1955 who earned the Social Security maximum from 1975-2016 (age 22 to 61) has a PIA of $2,888.
Total indexed earnings for this earner comes out to $4,109,280. When we divide this by 420 to figure the AIME, we get a maximum AIME of $9,784. Applying the 2017 bend points
of $885 and $5,336 (up from the 2016 bend points of $856 and $5,157) produces a PIA of $2,888 (up from $2,788 for the 1954 cohort).
The PIA is the amount the 1955-born baby boomer will receive if he applies for his benefit in 2021 at full retirement age (in this case, 66 and 2 months). If he applies next year at age 62,
then he’ll receive approximately 74% of that, or $2,137. If he applies at age 70, he’ll receive approximately 131%, or $3,783. These amounts may be increased by annual COLAs.