Mathematically speaking, Social Security Disability Insurance (SSDI) is calculated in the same way as Social Security retirement benefits. Both are based on your record of “covered earnings” — work income on which you paid Social Security taxes. Show
The Social Security Administration (SSA) starts by figuring your average monthly income across your working life, adjusted for historical wage growth. It then plugs that figure into a formula to determine your primary insurance amount (PIA), also known as your full retirement benefit. The PIA formula is progressive — weighted to provide proportionally higher benefits to lower earners — and it’s the same whether you’re claiming retirement or disability benefits. What differs is how much income data goes into determining your full benefit and when you can collect it. For retirees, the SSA uses the 35 highest-earning years to calculate the monthly average income and PIA. (Only yearly earnings up to an annually adjusted cap are counted. In 2022, the cap is $147,000.) You become eligible to claim that full amount at full retirement age, which is 66 and 4 months for people born in 1956 and is gradually rising to 67. Benefits are reduced if you claim earlier — by as much as 30 percent if you start taking them at the minimum age of 62. Because a worker may become disabled before reaching retirement age, Social Security uses a different time frame to determine the primary insurance amount for SSDI claims. The number of years of income used to figure the benefit depends on the age you became unable to work due to an injury or illness — the SSA’s basic definition of disability. Exactly how much of your earnings history is included depends on arcane Social Security terms like “elapsed years” and “computation years,” but basically, here’s how it works.
Suppose you’ve been working without interruption since age 21 but are sidelined at 60 by advanced rheumatoid arthritis. Applying its computation rules, Social Security would use your 33 best years of income, indexed for wage trends, to figure your PIA. If your disability struck at 50, it would be your 23 highest-earning years; at 40, the top 15 years. Regardless of your age, if your SSDI claim is approved, you’ll be awarded your full benefit — 100 percent of your PIA. Still, that full payment tends to be lower for SSDI recipients than for retirees, in part because your disability can cost you higher-earning years that would boost your calculated benefit. The average monthly retirement and SSDI benefits in January 2022 were about $1,614 and $1,359, respectively, according to SSA data. If you have an online My Social Security account, you can check your projected retirement and disability benefit amounts. Your benefit amount is based on the quarter with your highest wages earned within the base period. A base period covers 12 months and is divided into four consecutive quarters. The base period includes wages subject to SDI tax that were paid about 5 to 18 months before your disability claim began. The base period does not include wages paid at the time your disability begins. For a DI claim to be valid, you must have at least $300 in wages in the base period. The following information may be used to determine the base period for your claim. If a claim begins on or after January 1, 2022: January, February, or March: April,
May, or June: July, August, or September: October, November, or December: When I meet with potential clients, one of the questions I am often asked is – How much I am going to get from Social Security for my disability? Most clients need to know what their Social Security benefit amount will be. Here’s my lawyer answer - It depends. How much money you get on disability will depend on a number of things. These things include: For SSDI, benefit amounts are calculated according to a formula that uses your complete earnings record. The formula allows for yearly increases in individual benefits in order to reflect adjustments in the cost of living. The average SSDI payment is currently $1,358. The highest monthly payment you can receive from SSDI is $3,345 (the same maximum for retirement benefits). The amount of your benefit will be based on your average earnings for all of the years you have been working, not just your most recent salary. Your past earnings must be covered under the Social Security program to count towards the SSDI benefits you'll receive. "Covered earnings" are wages you've received from jobs that paid into Social Security. If you, for example, were paid "under the table" or are a state employee or another job that did not pay "Social Security taxes" or "FICA" out of your paycheck, these earnings are not covered. SSDI can be paid for up to 12 months prior to the date of the application if you are found disabled during that time. However, there is a 5-month waiting period for disability benefits. Essentially SSA will not pay you for the first five months you were disabled. For example, you apply on March 1, 2022, but say you became disabled on January 1, 2019. If SSA agrees that you became disabled on January 1, 2019, you will only be able to get benefits from March 1, 2021, to the date of the decision. In the same way, if you applied on March 1, 2022, saying you became disabled on January 1, 2022, and SSA agreed, you would get benefits starting on June 1, 2022 (remember – SSA does not pay for the first five months of disability). Depending upon when the judge determines that you became disabled, you may also be entitled to a lump sum back benefit payment. How much money will I get from SSI for my disability?For SSI, the maximum Social Security benefit amount in 2022 for an eligible individual is $841 per month and $1,261 per month for an eligible couple. This amount is the maximum you can receive. This amount can be reduced based on your specific circumstances. You can only get SSI benefits from the date of the application forward. For example, you apply on March 1, 2022, but say you became disabled on January 1, 2019. If SSA agrees that you became disabled on January 1, 2019, you will only be able to get benefits from March 1, 2022, which is the date you applied. There is no five-month holdback for SSI benefits. How do you know how much disability you will receive?You can see how much you are likely to receive if you are found disabled by looking at your MySSA account. This is a good rough idea of your monthly benefit amount. This account will also tell you how much your eligible dependents can receive as well. However, if your date of disability was in the past, the account will not tell you precisely. What Can You do to Help Your Disability Claim?If you're preparing to apply for Social Security disability or appeal a claim denial, I've written a book 9 Mistakes that Can Disable Your Social Security Disability Claim. This is a helpful and informative guide that will guide you through some of the common mistakes and errors that lead to unfavorable Social Security Disability decisions. Don't make a costly mistake that could cause you to lose the benefits that you need to survive! I'd love to send you a copy. Request Your FREE Copy of 9 Mistakes That Can Disable Your Social Security Disability Claim TODAY! |
How much do you get for disability benefits
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