Social Security Bend Points.
A definition, in plain English — with the books that teach it.
What it means
Social Security bend points are the income thresholds in the Primary Insurance Amount (PIA) formula that determine how much of a worker's average indexed monthly earnings (AIME) translates into a benefit. The formula replaces a higher percentage of low earnings (90%) than middle earnings (32%) and high earnings (15%). This progressive structure means lower-income workers receive Social Security benefits that represent a larger share of their pre-retirement income — making the system particularly valuable for those who cannot accumulate significant private savings.
Example
In 2024, the bend points are approximately $1,174 and $7,078 per month of AIME. A worker with $3,000 AIME receives: 90% of the first $1,174 ($1,057) + 32% of the next $1,826 ($584) = $1,641/month PIA. A worker earning double, at $6,000 AIME, does not double their benefit — demonstrating the progressive tilt.