What does Average Monthly Earnings mean? Read on to discover the definition & meaning of the term Average Monthly Earnings - to help you better understand the language used in insurance policies.
Average Monthly Earnings
Average monthly earnings (AME) is a statistic used by the Social Security Administration to calculate an individual's Social Security benefits. To arrive at this number, the Social Security Administration uses the top-earning 35 years of a person's career after age 21 to calculate a monthly average for their earnings.
We hope the you have a better understanding of the meaning of Average Monthly Earnings.