The Social Security Administration has many different terms and acronyms that are used to describe aspects of the retirement or disability process, but to a layman these terms and acronyms can be confusing and difficult to understand. Below are some terms and acronyms that are better explained.
PIM: Primary Insurance Amount is the monthly amount paid if you are a retired worker who is collecting Social Security benefits at full retirement age or if they are a disabled worker.
Credits: Workers who pay Social Security taxes earn credits that count toward eligibility for retirement and Disability Insurance Benefits (DIB). A maximum of four credits can be earned each year. Workers earn a work credit through every $1,200 you earn from work-related activity quarterly. The number of credits needed to be eligible for Social Security disability benefits depends on age.
Early Retirement: Workers are eligible to receive early Social Security retirement benefits at age 62, but collecting early will reduce you your monthly amount by about 80 percent of what your full retirement amount would be.
Full Retirement Age: Some people may not be aware that full retirement age is different depending on what year you were born. All people born 1937 and earlier have a full retirement age of 65. Those born between 1938 and 1959 will have a full retirement age somewhere between 65 years and two months and 66 years and 10 months old. All workers born 1960 and later have a full retirement age of 67.
Backpay: Monthly benefits that a worker may be entitled to prior to the month or date in which they applied for benefits if all other disability requirements are met.
For more information about a variety of terms related to the Social Security retirement or disability process click here.
