Benefit Formula

The Benefit Formula is a way to determine the amount of retirement benefits an individual receives, based on their earnings and work history. It typically considers factors such as the highest earning years, the number of years worked, and an average of those earnings. The formula adjusts for inflation over time and applies a percentage to this average to calculate the benefit amount. Essentially, it helps ensure that retirement benefits are fair, reflecting a person's career earnings and providing a predictable way to estimate retirement income.