Plain-English definitions for the financial and Social Security terms used in this calculator.
Amortized Drawdown to Zero
A withdrawal plan that spreads your savings evenly so your account hits exactly zero on the last year of your projection.
Average Indexed Monthly Earnings (AIME)
The average of your 35 highest-earning years, adjusted for inflation — this is what Social Security uses to calculate your PIA.
Bend Points
Dollar thresholds in the Social Security formula that give lower earners a higher percentage back — the system is designed to replace more of a low earner's income.
Cost-of-Living Adjustment (COLA)
The annual raise Social Security gives benefits to keep up with inflation.
Current Income
Your annual income right now. The model projects your future earnings curve from this point using your age, gender, and education.
Defined Benefit (DB)
A retirement promise based on a formula — Social Security is a defined benefit: you're guaranteed a set amount based on your earnings history.
Defined Contribution (DC)
A retirement account where you put money in and it grows — your balance depends on what you contributed and how the market performed.
Delayed Retirement Credits (DRCs)
A bonus you earn for waiting past your Full Retirement Age to claim — your benefit grows by about 8% for every year you wait, up to age 70.
Dual Entitlement
When you qualify for both your own Social Security AND a spousal benefit — you get your own first, then only the difference if the spousal amount is higher.
Excess Spousal Benefit
Extra money a lower-earning spouse can receive — up to 50% of the higher earner's benefit — if it's more than their own Social Security.
Full Retirement Age (FRA)
The age when you get 100% of your Social Security benefit — currently 67 for most people.
Headline Multiple
How many times more money your projected DC portfolio generates in retirement compared to your Social Security benefit over the same period.
OASI / DI
OASI = the retirement and survivor fund. DI = the disability fund. Together they make up the 12.4% payroll tax. This app focuses on OASI (10.6%).
Payroll Tax
The 12.4% tax taken from your paycheck (half from you, half from your employer) that funds Social Security.
Primary Insurance Amount (PIA)
The base monthly dollar amount Social Security calculates for you before any reductions or bonuses.
RIB-LIM (Widow/er's Limit)
A protection rule that says if a deceased spouse claimed benefits early, the survivor still gets at least 82.5% of what that spouse was originally owed.
Survivor Benefit
After one spouse dies, the surviving spouse can receive the deceased's full benefit (including any bonuses from waiting to claim) instead of their own smaller benefit.
Trust Fund Depletion
The projected year when Social Security's reserve savings run out — benefits don't stop, but they'd have to be cut to match only what's coming in from payroll taxes.