A situation where salaries or earnings are continually adjusted according to a specific index. A common occurrence of this is as "cost-of-living" salary increases, or when social security benefits which are adjusted according to purchasing power comparisons. Due to inflation over time, the purchasing power of each unit of currency diminishes, therefore salaries and other benefits must be increased in order to receive the same purchasing power as preceding years.
Related information about indexed earnings:
- Indexed Earnings Definition | Investopedia
Indexed earnings are generally used in computing pension-type benefits. Since wage levels generally rise over time, a worker's earnings in the past must be ...
- Social Security Retirement Benefit Calculation
Oct 16, 2012 ... We use the highest 35 years of indexed earnings in a benefit ... Below the indexed earnings are the sums for the highest 35 years of indexed ...
- Social Security Benefit Amounts
Oct 16, 2012 ... This average summarizes up to 35 years of a worker's indexed earnings. We apply a formula to this average to compute the primary insurance ...
- What is indexed earnings? definition and meaning
Definition of indexed earnings: A situation where salaries or earnings are continually adjusted according to a specific index. A common occurrence of this is as ...
- List of Defined Terms
Indexed Earnings means your Earnings adjusted by the rate of increase in the CPI-W. During the first year of Disability, your Indexed Earnings are the same as ...
- How to Calculate Your Average Indexed Monthly Earnings (AIME)
Third – Use Your Highest 35 Years of Indexed Earnings And Calculate a Monthly Average. The Social Security benefits calculation uses your highest 35 years of ...
- Social Security: Average Indexed Monthly Earnings Explanation ...
Jan 13, 2010 ... Age, Earnings, Index, Indexed Earnings. 22, $ 5,000.00, 7.4186559, $37,093.28. 23, $ 5,589.41, 7.0133446, $39,200.47. 24, $ 5,771.91 ...
- Social Security Disability - Average Indexed Monthly Earnings
The result is your yearly indexed earnings. Dividing this number again by 12 gives you your average indexed monthly earnings. When your average indexed ...