Decoding Your SSDI Benefits: A Guide to Calculating Disability Payments
Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) offer crucial financial support to individuals with physical or mental disabilities who are unable to work.
The determination of your eligibility for Social Security Disability Insurance (SSDI) benefits will be based on your average earnings before your disability began.
Individuals whose wages were subject to higher taxation receive greater payments as a form of insurance.
The quantity of benefits you receive under this system is not influenced by your household income or the severity of your disability.
In order to be eligible for SSDI benefits, it is typically required that an individual’s monthly income does not exceed $1,350.
Applicants must meet certain criteria in order to qualify for consideration. These criteria include being unemployed full-time, having a minimum of 12 months of unemployment, and having at least five years of employment within the previous ten years.
Your monthly SSDI benefit is determined by the Primary Insurance Amount (PIA) and Average Indexed Monthly Earnings (AIME).
Understanding the Calculation of the SSDI Benefit
The AIME calculation takes into account up to 35 years of work experience.
The Social Security Administration (SSA) calculates the total of the years with the highest indexed earnings and then divides it by the total number of months in that specific year.
After this step, the average value is reduced by one to calculate the AIME.
This represents the PIA, also known as the minimum benefit.
The calculation involves adding together three annual percentage changes of three fixed components of your AIME and bend points, which are adjusted to align with the national average wage index.
Based on the earnings, you will receive different percentages depending on the bend points.
In 2020, the maximum monthly SSDI benefit disbursed was $1,258, while the highest-earning individuals received $3,011.
To find out your personal benefit amount, you can visit the Social Security website and use their calculator to estimate your expected payment.
It is advisable to seek guidance from a lawyer who specializes in Social Security and disability law when applying for Social Security disability benefits.
This will help ensure that your application is optimized to maximize your eligibility.