If you’re unable to work due to a disability, Social Security Disability Insurance (SSDI) can be a vital financial lifeline. But one common question for many applicants is, “How much can you receive in SSDI benefits?”
The answer depends on several factors, including your work history, average earnings, and the Social Security Administration (SSA) rules.
This comprehensive guide explains the key details of SSDI benefits, including how the amount is determined. It also addresses common questions about the process. Reach out a experienced SSDI attorney for your assistance.
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What Are SSDI Benefits?
SSDI is a federal program designed to provide financial assistance to individuals unable to work because of a qualifying disability. Unlike other disability programs, SSDI isn’t income-based. Instead, it considers your work history and requires you to have paid into the Social Security system through payroll taxes (FICA).
You may qualify for monthly benefits if you’ve worked long enough and contributed sufficiently. SSDI exists to replace a portion of your income, helping you cover living expenses like rent or mortgage payments, medical bills, and daily necessities.
SSDI vs. SSI
SSDI is different from Supplemental Security Income (SSI). SSDI is tied to your work history, whereas SSI is a need-based program for people with limited income and resources.
How Are SSDI Benefits Calculated?
The amount you can receive in SSDI benefits is determined by a formula applied by the Social Security Administration (SSA).
It calculates benefits using your Average Indexed Monthly Earnings (AIME) and a benefit formula that results in your Primary Insurance Amount (PIA).
- Average Indexed Monthly Earnings (AIME):
Your AIME is calculated based on your lifetime earnings before your disability began. The SSA indexes these earnings to account for changes in average wages over time.
They then average your highest-earning years, with the exact number of years depending on how long you’ve worked.
Example: If you worked for 20 years and earned $50,000 annually in your highest-earning years, your AIME would be based on those earnings, adjusted for inflation.
- Primary Insurance Amount (PIA):
After determining your AIME, the SSA applies a formula to calculate your PIA. This is the base amount you’ll receive in monthly SSDI benefits.
The formula uses fixed percentages of your AIME at different income levels or “bend points.”
For example, in 2023:
- 90% of the first $1,115 of your AIME
- 32% of your AIME between $1,116 and $6,721
- 15% of your AIME above $6,722
The final result gives you your monthly benefit amount, though adjustments (like withheld taxes or Medicare premiums) can slightly reduce that amount.
Factors That Influence Your SSDI Benefit Amount
While the formula provides a guideline, several factors can influence how much you actually receive in SSDI benefits:
- Your earnings record
The more you earn—and the longer you work—the higher your AIME and PIA will be. High-income earners who contributed to Social Security for years generally have higher monthly benefits.
- Annual adjustments for cost of living
SSDI benefits are adjusted annually through a Cost of Living Adjustment (COLA) to account for inflation. If there’s a rise in the cost of living, your monthly benefits may increase.
Example: If the SSA announces a 2% COLA for the year, your $1,925 monthly benefit would increase to $1,963.50.
- Family benefits
If you have dependents, they may also qualify for benefits. Eligible family members (such as children or a spouse) can receive up to 50% of your monthly amount, with limits on the total family benefit.
- Work credits
To qualify for SSDI, you need a specific number of work credits. Generally, you need 40 credits, with 20 earned in the 10 years prior to your disability. Younger workers may qualify with fewer credits. Fewer credits can impact eligibility and the amount you receive.
- Offsets for other benefits
Receiving other benefits, such as workers’ compensation or certain state disability benefits, could reduce your SSDI payments. This is known as a benefits offset. However, private long-term disability insurance generally doesn’t affect SSDI payments.
- Medicare premium deductions
After receiving SSDI for 24 months, you become eligible for Medicare. While this is often a major benefit, the Medicare Part B or Part D premiums may be deducted from your monthly SSDI benefits.
What Is the Maximum SSDI Payment?
The maximum SSDI benefit amount changes yearly based on national wage trends. For 2023, the maximum monthly payment was $3,627. Only high earners with significant lifetime contributions to Social Security are likely to qualify for the maximum amount.
Most people, however, receive less than the maximum. The average monthly SSDI benefit in 2023 was $1,483, which gives you a realistic idea of what you might expect.
Can You Work While Receiving SSDI Benefits?
The SSA allows you to work under certain conditions without losing your benefits, including participation in the Ticket to Work Program, which helps individuals return to employment.
Why Legal Help Can Make a Difference
The Social Security Disability process might feel like stepping into a maze—one full of paperwork, rules, and decisions that don’t always seem straightforward.
Think of legal professionals as navigators of this complex system. They know how to sidestep the common pitfalls that can derail an application, such as incomplete medical records or missed deadlines.
They aren’t just lawyers; they’re problem-solvers who can turn a daunting process into one where you feel supported and confident about your chances. That difference in approach can make all the difference in outcome.
Bailey & Galyen Helps You Understand Your SSDI Benefits
SSDI benefits can provide critical support if you cannot work due to a disability. While the calculation process can seem complex, understanding the key factors—like your work history, AIME, and PIA—can help you estimate how much you might receive.
Every case is unique, so if you have questions about your situation or need assistance navigating the process, don’t hesitate to contact Bailey & Galyen.
Our experienced SSDI attorneys are here to provide the guidance you need to secure your benefits. Reach out today for a consultation and take the first step toward securing your financial future.
