Your Social Security Disability Insurance (SSDI) benefits may not change depending on the state you live in, but certain states may be more advantageous than others. This may be due to the cost of living or the approval rates.
The states with the worst Social Security approval ratings include Alaska, Kansas, Delaware, Wisconsin, and Rhode Island. The worst states to live in when living on SSDI benefits alone include New Hampshire, Alaska, and Virginia.
Keep reading below as we provide more information on the worst states for disability beneficiaries.
Calculating Your Social Security Disability Insurance Benefits
You need to have worked and paid Social Security taxes for at least five years within the past 10 years in order to be eligible for Social Security Disability Insurance benefits. This is known as the 5 year rule for Social Security Disability.
You will not be eligible for this assistance if you have not been employed for the equivalent of five full-time years or if you have not contributed any money to the system during that period.
The SSDI process is notoriously complicated. When considering Social Security Disability Insurance benefits, there are two crucial issues to consider:
- Do you have enough years of employment to be eligible for benefits?
- When does your coverage end?
When you stop working and stop paying into the system, your SSDI work credits normally expire after five years. You must provide evidence that you are disabled according to the Disability Insurance Benefits (DIB) guidelines before your disability insurance coverage ends. Each person’s timetable is based on their own work record.
The amount of your monthly SSDI benefits is calculated based on a specific formula by the Social Security Administration (SSA). The average monthly benefit amount for SSDI is $1,358. You can estimate your monthly payments from the Social Security Administration by using their online benefits calculator.
Your monthly SSDI payment is calculated using the Social Security taxes you’ve paid throughout the course of your working life. When determining your monthly Social Security payout, Social Security first looks at your AIME.
Your Average Indexed Monthly Earnings (AIME) over a number of years will be used by the Social Security Administration to calculate your SSDI benefit.
Following this step, a formula is applied to your AIME in order to compute your Primary Insurance Amount (PIA). Your PIA is the monthly benefit amount that you will receive from the Social Security Administration for your SSDI payments.
5 States With the Lowest Disability Approval
While certain states grant disability benefits to more than half of their applicants, others are much less likely to do so. The five most difficult states to obtain disability from are as follows:
Alaska
The approval rating for SSDI benefits is only 17%.
Alaska’s approval ratings have lagged behind the national average for several years. For this reason, it is the most challenging state to receive disability benefits from. The good news is that the average time to get a hearing is only 14 months, compared to 19 months throughout the country.
In addition, just 11,583 out of 137,688 disabled adults are receiving benefits, according to data from the SSA and the Center for Disease Control (CDC).
Kansas
The approval rate in Kansas is only 33%.
The reconsideration phase accounts for the vast majority of denials in this state. Only 18% of people who asked for a second look at their application had their requests approved.
Delaware
The approval rate in this state is only 35%.
There are 198,284 disabled adults in Delaware, according to Centers for Disease Control data. The Social Security Administration states that only 26,574 residents of the state are now receiving disability benefits. Overall, just approximately one-fifth of the disabled people in the state are receiving assistance.
Approval rates in Delaware have risen dramatically in recent years. It’s very close to the average for the United States. Despite this, it’s among the lowest in all of the United States, which is why it’s on this list.
Wisconsin
The approval rate in Wisconsin is approximately 35%.
The approval rate in Wisconsin is similar to the national average, as is the case in Delaware. But it’s still not very high in comparison to other states. Reconsideration requests in the state have a far higher approval rate compared to the average nationwide rate of 17%.
Rhode Island
The approval rate for SSDI benefits in this state is approximately 36%.
Rhode Island has a shorter processing time than some other states. On average, applicants need only wait 11 months to hear back about their application. However, it only grants permission for 36% of all claims submitted, which is somewhat higher than the national average.
Worst States to Live On SSDI Benefits Alone
Following is a list of some of the worst states to live in while on SSDI benefits alone.
New Hampshire
The cost of living index is currently at 109.9. Rent for a one-bedroom apartment, on average, is $1,300 a month.
In New Hampshire, the average cost of retirement is $1,180,933. The high cost of living in New Hampshire means that this is $60,500 more than the average expenditure of a person of retirement age elsewhere.
Alaska
The average monthly rent for a single room in Alaska is $1,302, and its cost of living index is 127.1.
Because of its geographical location and reliance on imported goods, Alaska has a notoriously high cost of living. However, housing doesn’t play an important part in this.
The average cost of a home in the state is $311,100, which is lower than the average value of about $326,000 across the entire country.
Virginia
The monthly rent for a single room is approximately $1,344 in Virginia, with a cost of living index of 101.8.
Although there are tax breaks for retirees in Virginia, the state as a whole isn’t exactly friendly to those trying to make ends meet on a fixed income like Social Security.
Expenses in Northern Virginia, especially in the greater Washington, DC, area, are a major contributor to the state’s high overall cost of living.
Conclusion
As you will see from our list, there are many states you should avoid if you rely on Social Security as your sole source of income. Contacting a Social Security Disability lawyer or a social security advocate may help you maximize your disability payments.
