The maximum Social Security Disability Insurance (SSDI) benefit you can receive in 2023 is $3,627 per month. But not everyone who receives SSDI benefits will receive this amount. Just $1,358 on average is the SSDI payment amount.
The SSDI benefit amount you will receive is based on the amount of Social Security contributions you’ve made from prior wage withholdings. To determine how much you’ll receive in benefits, the Social Security Administration will consider your lifetime average earnings before you became disabled.
This post will examine how to find out the amount of SSDI benefits you are eligible for.
The Fastest Way To Check Your SSDI Payment Amount
Before diving into the numbers, there’s a quick and straightforward way to figure out how much SSDI you’ll receive without a calculator.
The Social Security Administration will specify exactly how much money you can anticipate receiving from SSDI each month when you open a free my Social Security account (you must create an account to apply for SSDI).
Setting up your account is a simple process; it takes approximately 15 minutes, and you must enter your personal information and use face recognition, which requires a camera, to prove your identity. Your information is safe, and it is entirely free.
You may view your employment history, the number of work credits, and the status of your retirement benefits with an account. You can also fix any mistakes on your record if they exist to boost your SSDI benefit.
How Is SSDI Calculated?
The Social Security Administration determines your average indexed monthly earnings (AIME) as the first step. Your AIME is defined by your payments and the Social Security taxes you paid while employed. The Social Security Administration can calculate your principal insurance amount (PIA) using your AIME. Your PIA determines the amount of your compensation.
Calculate Your AIME
The Social Security Administration indexes your wages before computing your average monthly indexed earnings. This implies that they are modified to account for changes in living costs over time.
The Social Security Administration examines up to 35 years of your earnings, but due to inflation, $100 earned 20 years ago is now worth more than $100. The Social Security Administration may ensure that your SSDI benefit helps you maintain the same standard of living in the current economy by indexing your earnings.
The Social Security Administration will then take the maximum 35 years of your employment history and average your indexed earnings.
The Social Security Administration selects your highest-earning years, which is good news. Therefore, if you worked and contributed to Social Security for 40 years, they will determine your AIME based on the 35 years your wages were the highest.
Your PIA is calculated after they arrive at your AIME.
Calculate Your PIA
Your AIME is divided into three slices, each representing your primary insurance amount. Your first $1,115 in earnings is covered by the first slice in 2023—the second ranges from $1,115 to $6,721 in profits. Gains beyond $6,721 are accounted for in the third slice. The dollar thresholds for those pieces often rise each year.
According to the PIA formula, your monthly SSDI benefit for 2023 is worth (add all of these calculations):
- 90% of the first slice, which represents your initial AIME of $1,115
- 32% of the second slice, representing any AIME between $1,116 and $6,721
- 15% of the third slice, representing any AIME above $6,721
To the subsequent-lowest $0.10 multiple, the Social Security Administration rounds up. Your benefit check will be rounded to $1,358.30 if your PIA computation totals $1,358.32.
SSDI Calculation Example
Let’s look at an example when the arithmetic becomes more challenging. Suppose the SSA determines that your typical monthly indexed earnings were $5,000. By slicing that up, you can choose how much your SSDI payout will be:
- 90% of the first $1,115, or $1,003.50
- 32% of the $3,885 (your $5,000 AIME less the $1,115 in the first slice), or $1,243.20, are the total payments.
- Your AIME was less than $6,721, so the 15% slice is not applicable.
Your SSDI check would be $2,246.70 monthly ($1,003.50 from the first slice plus $1.243.20 from the second).
How To Increase Your SSDI Payment
Unfortunately, the only option to raise your SSDI payment is to raise your AIME, which necessitates working for at least a year at a higher salary to be considered when calculating your average earnings. It’s probably not realistic for you to apply for a disability if that is something you’re considering.
However, you can take measures to ensure you receive as much as possible. Examine your earning history on your Social Security account. Your AIME and SSDI payment would go up if the Social Security Administration corrected any misreported or missing years from your record.
Types of Income That Lower Your SSDI Payment
Although most individuals won’t have to worry about it, some sources of income could lower your SSDI check.
Workers Compensation
On a worker’s compensation claim, SSDI eligibility is conceivable. Your combined SSDI and workers’ compensation benefits can be, at most, 80% of your prior income. The SSA will, therefore, deduct SSDI benefits from your benefits under workers’ compensation if you are eligible for both.
State Disability Benefits
Only Hawaii, New York, New Jersey, Rhode Island, and California provide short-term disability programs. While you receive the state funds, you can continue to get SSDI, but your SSDI payout will decrease.
Other Public Pensions
For instance, if you contribute to a state pension rather than Social Security, it may lower the amount of SSDI benefits you are eligible for.
Will My SSDI Payments Ever Change?
SSDI payments will rise yearly automatically; the Social Security Administration uses a cost-of-living adjustment (COLA) to alter SSDI payouts annually. Checks will increase by 8.7% as a result of the 2023 COLA.
After the annual COLA, your check should only increase. Your regular SSDI payment schedule is unaffected by the yearly increase as well.
Conclusion
To calculate your SSDI benefit amount, you should determine your PIA based on your AIME. For more on this subject, contact a Social Security disability attorney who can guide you through the process.
By opening an unrestricted Social Security account, where you can also fix any mistakes in your record, you may check your precise SSDI payout amount the quickest and most efficiently.
While it is difficult to increase your SSDI payout, checking your earnings history for accuracy may increase your AIME. It’s critical to be aware of any income sources, such as workers’ compensation, state disability benefits, and other public pensions, that could reduce your SSDI payment.
