Under Social Security, what is the primary insurance amount (PIA)?

The primary insurance amount (PIA) is essentially the monthly benefit that a person can expect to receive at their full retirement age, based on their earnings history and the Social Security earnings calculation formula. This calculation ensures that benefits are equitable and reflect the amount a worker has paid into the Social Security system through payroll taxes over their working life.

The PIA serves as the foundation for determining the benefits a person will receive from Social Security upon reaching retirement age, which is why option B is correct. It’s an essential figure because it helps individuals plan for their retirement by providing an estimate of their expected Social Security benefits.

Other options relate to specific scenarios within Social Security but do not define the PIA. The maximum benefit amount at retirement is not the same as the PIA, as the maximum benefit can vary based on factors like when a person decides to start claiming benefits. Similarly, the amount received if disability is claimed and the amount received upon the death of the insured pertain to benefits under different circumstances, not the primary insurance amount itself.