Is Social Security PIA the amount before or after Medicare deductions?
Can someone please explain PIA (Primary Insurance Amount) to me? I'm trying to plan for retirement next year and I'm confused about whether the PIA figure the SSA gave me is what I'll actually get in my bank account. Is that before or after they take out Medicare Part B premiums? The letter I got shows my estimated PIA at $2,245 but I don't know if that's my actual monthly payment. My sister says they take Medicare out first but my neighbor says that's wrong. Does anyone know for sure?
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Admin_Masters
Your PIA is the base amount you're entitled to at your full retirement age (FRA) BEFORE any deductions. Medicare premiums are deducted from your actual benefit payment, not from your PIA calculation. The PIA is just the starting point that SSA uses to determine your benefit amount based on when you claim. If you claim before your FRA, you'll get less than your PIA. If you wait until after FRA, you'll get more than your PIA due to delayed retirement credits.
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Charlotte White
•Thank you! So if my PIA is $2,245 and I'm planning to claim at my FRA next year, that means my benefit before Medicare deductions would be $2,245? And then they'll take out whatever the Medicare Part B premium is at that time?
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Matthew Sanchez
my sister got her first SS check last month and she was sooo confused by this exact same thing!! the medicare comes OUT of your benefit it's not part of the calculation. they just take it from your payment automatically if you sign up for medicare parts B and D but not part A which is free
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Ella Thompson
•This is correct. Your PIA is calculated based on your lifetime earnings record. Then any adjustments for early/late filing are applied. THEN Medicare premiums are deducted if you're enrolled. Part A is premium-free for most people with sufficient work credits (40+), but Parts B, C (Medicare Advantage), and D all have separate premium structures.
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JacksonHarris
I WISH the Social Security Administration would explain this better!!! When I retired 3 years ago, I was SO CONFUSED by all their jargon. They sent me a letter with all these different numbers and NOWHERE did it clearly explain what would actually hit my bank account each month!!!
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Admin_Masters
•I hear you! The terminology can be frustrating. Just to clarify for everyone: PIA is the base benefit at Full Retirement Age, then adjustments are made for early/late filing, then deductions happen (Medicare, tax withholding if requested). The actual amount deposited is often called your "monthly benefit payment" or "net benefit."
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Jeremiah Brown
I spent 4 hours on hold with SSA trying to get my PIA explained when I was preparing for retirement. honestly the whole system is a mess. I found a really helpful service called Claimyr (claimyr.com) that got me through to an actual SSA rep in about 20 minutes instead of waiting all day. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - saved me so much frustration when I had questions like yours that needed clear answers.
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Charlotte White
•Thanks for the tip! I tried calling SSA twice last week and gave up after 45 minutes on hold both times. I'll check out that service if I need to call again. Did the rep you spoke to actually give helpful answers? I feel like I get different answers depending on who I talk to.
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Royal_GM_Mark
Just to add another wrinkle - if you have Medicare Part B and D, in 2025 the standard Part B premium is $179.80/month (up from $174.70 in 2024). That amount will be deducted from your Social Security payment automatically. But if your income is above certain thresholds, you might pay more due to IRMAA (Income-Related Monthly Adjustment Amount). Your PIA never changes because of these deductions - it's just what gets taken out before you receive your payment.
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Charlotte White
•Oh wow, I didn't know the premiums were that high now! And what's IRMAA? Is that something else I need to worry about? My income right now is about $68,000 from my job, but of course that will change when I retire.
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Royal_GM_Mark
•IRMAA only affects higher-income beneficiaries. For an individual, the first income threshold starts at $103,000 for 2025 (based on your 2023 tax return). Since your current income is below that, you'd likely just pay the standard premium unless you have other significant income sources. After you retire, your income will probably be even lower, so you should be fine with the standard premium.
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Amelia Cartwright
My husband and I were both sooo confused by all this when we retired last year. The SSA website explains PIA, but it never clearly connects it to what actually shows up in your bank account! Here's what we learned after much frustration: - PIA = your base benefit at FRA - If you claim early: PIA minus reduction percentage - If you claim after FRA: PIA plus delayed credits - THEN they subtract Medicare premiums - THEN they subtract any tax withholding you requested So many steps and they don't make it clear in their letters!
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Charlotte White
•Thank you for breaking it down like this! This is actually clearer than what the SSA told me when I visited my local office. I'm thinking I should just add about $180 to my budget for Medicare Part B and then also set aside some for taxes since I'll have other income too.
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Matthew Sanchez
btw my cousin didn't sign up for medicare when he got SS and they didn't take anything out but then he got hit with penalties later when he did sign up so make sure u dont miss the enrollment window!!!
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Ella Thompson
•This is an important point. If you're not covered by qualifying employer insurance, you need to sign up for Medicare during your Initial Enrollment Period (IEP) which is 7 months around your 65th birthday (3 months before, your birth month, and 3 months after). Missing this can result in permanent premium penalties - 10% for each 12-month period you could have had Part B but didn't.
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Admin_Masters
To directly answer your original question: Your PIA of $2,245 is the basic benefit amount before ANY deductions (Medicare or taxes). Whether that's exactly what you'll receive depends on when you claim relative to your FRA. Then Medicare premiums and any tax withholding you've requested will be subtracted before the payment hits your bank account.
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Charlotte White
•Thank you to everyone for all the helpful answers! I understand now that my PIA is the base amount, and the actual deposit will be less after Medicare deductions. I'll make sure to sign up for Medicare during my enrollment period in March when I turn 65, even though I won't start collecting Social Security until June when I retire. This has been so much clearer than the official explanations!
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