The Social Security Disability Insurance (SSDI) program is intended for individuals who have contributed to the Social Security system and are no longer able to work due to a disability. The maximum amount of benefits claimants can receive changes each year to account for inflation.
As of 2024, the maximum amount that SSDI beneficiaries can receive from the Social Security Administration (SSA) is $3,822, compared to $3,627 in 2023. This is also the maximum amount that individuals who have reached full retirement age can receive each month in retirement benefits.
The maximum amount changes yearly, so be sure to check the SSA website.
This article provides an in-depth guide to SSDI payments, including the maximum amount of benefits an individual can receive.
What is the most SSDI Will Pay?
According to the Social Security Administration, the average SSDI monthly benefit amount in 2023 was $1,483. However, your exact Social Security Disability Insurance benefit amount may be lower or higher than the average payment since it is dependent upon various factors, such as the cost of living, your medical condition, and whether you have any dependents.
The maximum SSDI monthly benefit amount an applicant can receive in 2024 is $3,822. Once again, your exact monthly benefit amount may be lower or higher than this amount.
To determine the exact amount of your benefit, the SSA considers your average earnings during your working years prior to the onset of your disability. Specifically, the SSA calculates your covered earnings. These earnings are those that you earned while working in jobs covered by Social Security and from which your employer deducted either Federal Insurance Contributions (FICA) or Social Security taxes.
FICA or Social Security taxes are deducted from each paycheck. Your nine-digit number helps Social Security accurately record your covered wages or self-employment. As you work and pay FICA taxes, you continue to earn credits for Social Security benefits.
Any other government benefits you receive, such as worker’s compensation, public disability benefits, or an employment-based pension that is not part of Social Security (e.g., from a foreign government), could limit or reduce the amount of SSDI you receive.
You might not be eligible for disability payments even if you’re disabled if you can work and make enough to satisfy the substantial gainful activity (SGA) requirements.
Eligibility Requirements for SSDI Benefits
In order to be eligible for SSDI, you need to have worked for a certain amount of time within a certain time frame. Your eligibility is based on the number of work credits you have accumulated.
Typically, the standard requirement is 40 work credits, with at least 20 of those credits earned within the last ten years. The work credit requirements are different for those who are younger and may not require as much.
You must also meet the criteria for disability as defined by the Social Security Administration. The Social Security Administration uses the following criteria to assess whether an individual is disabled:
- The disability must prevent them from engaging in SGA
- The disability must have lasted or be expected to last for a minimum of 12 months or result in your death
- The disability must be severe
The Social Security Administration has a medically approved Listing of Impairments, also known as the Blue Book. If your medical condition matches a Blue Book listing, you may be automatically considered eligible for SSDI benefits.
Why SSDI Benefits Are Important
Anyone can become disabled, especially as we get older, and it has a devastating impact on people’s financial situations.
Disabled people witness a substantial decline in their wages, the family’s overall income, and expenditure on necessities like food and housing. SSDI benefits can prove to be a lifeline for disabled people in such situations. The following section highlights the importance of SSDI benefits.
High Chances of Death and Disability
The Social Security system is considerably larger than the retirement program, for which it is most popular. In fact, the SSDI program provides benefits to over 7.4 million people in the U.S.
A young individual who is just beginning their professional life today has approximately one in three chances of passing away or becoming disabled before reaching the full retirement age set by Social Security.
Protection for Workers
SSDI is an earned benefit that provides millions of workers with essential financial protection. More than 160 million workers in the U.S. have earned SSDI benefits after contributing to the payroll tax. These individuals will be offered financial support in the event that they develop a severe and long-lasting medical impairment.
Increasing Disability Rates with Age
Aging increases the likelihood of becoming disabled.
This means that the likelihood of receiving SSDI at the age of 50 is more than twice as high as it is at the age of 40, and it is also more than twice as high at the age of 60 as it is at the age of 50. This is indicative of the general trend toward a rise in disabling conditions among the elderly.
There are multiple contributing factors.
One is the increased likelihood of age-related diseases like, heart conditions, dementia, or stroke. Another factor is degenerative diseases, like Amyotrophic lateral sclerosis (ALS) or Multiple Sclerosis (MS), that get worse over time.
Lastly, people’s bodies naturally deteriorate with age, particularly in physically demanding jobs, which increases the risk of severe musculoskeletal disorders and injuries.
How to Calculate Your SSDI Payments
In order to determine your SSDI benefits, the Social Security Administration first determines your AIME and Primary Insurance Amount (PIA). Here is how these are calculated:
Average Indexed Monthly Earnings
The SSA will first determine your AIME. In order to do this, the SSA will adjust, or index, your lifetime earnings to take into account the increase in general wages that occurred over the years when you were employed.
The reason for this is to ensure that the payments you receive in the future are proportional to this increase. In the calculation process, the Social Security Administration will consider up to 35 of your years of employment.
The Social Security Administration then adds up all of the years with the greatest earnings and divides it by the total number of months in those years. The average is then rounded up to arrive at your AIME.
Primary Insurance Amount
Your PIA is the amount your SSDI benefit amount is based on. The Social Security Administration calculates your PIA by adding three fixed percentages of your AIME. The sums of the amounts that come out of the computation are known as “bend points.” The bend points are annually adjusted to correspond with the national average salary index.
When calculating PIA for an individual who is eligible to receive SSDI benefits in 2024, the following percentages must be computed:
PIA formula bend points
The PIA is the sum of three separate percentages of portions of average indexed monthly earnings. The portions depend on the year in which a worker attains age 62, becomes disabled before age 62, or dies before attaining age 62.
For 2024, these portions are the first $1,174, the amount between $1,174 and $7,078, and the amount over $7,078. These dollar amounts are the “bend points” of the 2024 PIA formula.
PIA formula
For an individual who first becomes eligible for old-age insurance benefits or disability insurance benefits in 2024 or who dies in 2024 before becoming eligible for benefits, his/her PIA will be the sum of:
(a) 90 percent of the first $1,174 of his/her average indexed monthly earnings, plus
(b) 32 percent of his/her average indexed monthly earnings over $1,174 and through $7,078, plus
(c) 15 percent of his/her average indexed monthly earnings over $7,078.
Impact of Other Incomes on Your SSDI
The amount of money you get each month from SSDI could be reduced if you get other forms of government assistance. Some examples of income that could impact your SSDI payment each month are:
- Worker’s compensation benefits
- Benefits for people with disabilities funded by the government
- Benefits paid out as a pension for employment not covered by Social Security. For instance, if you hold or have held a position of employment with the federal government.
- Pensions provided by foreign governments
Some Supplemental Security Income (SSI) recipients supplement their income with other sources. But this is risky, as SSI has strict income limits. Violating these income limits over time can result in the termination of SSI benefits.
Factors Affecting SSDI Benefits
When determining how much money you will get from Social Security Disability Insurance, the SSA takes several things into account. Many factors could affect your SSDI benefit amount, including your earnings, employment status, and family situation. These are listed below:
Work History
The Social Security Administration determines the amount of your primary insurance, which is the foundation of your SSDI benefit, by calculating your average indexed monthly earnings over your working years. Payments from SSDI tend to be higher when a person’s lifetime earnings are higher.
Disability Onset Date
The date that the Social Security Administration determines to be the onset of your disability can also determine the benefit amount you receive, particularly when retroactive payments are taken into consideration.
Application Date
The Social Security also considers the date of your application when determining retroactive payments as SSA has a maximum of 12 months of benefits when paying. SSA can only pay up to one year prior to your application date.
Age of Applicant
The Social Security Administration uses your age at the beginning of disability to determine your AIME, which in turn affects the amount of benefits you get.
Work Credits
Another aspect that goes into determining the amount of benefits you receive is the number of work credits you have acquired throughout your employment. These credits can determine both your eligibility and the amount you pay and are calculated using your yearly earnings.
Family Background
Your total SSDI payout may be higher if you have a family, and your spouse or children are also eligible for SSDI benefits. Each eligible family member can receive up to half of your disability payment amount.
Other Income Sources
If you receive certain forms of supplemental income, it may impact your SSDI benefits. If you’re already getting benefits from workers’ compensation or another governmental program for disabilities, for instance, it could cut into your SSDI payments.
How to Maximize Your SSDI Benefit Amount
The following may maximize or increase your Social Security Disability benefits.
A Cost-of-Living Adjustment (COLA)
The Social Security Administration increases benefits for SSDI and SSI on an annual basis in response to changes in the cost of living.
These cost-of-living updates are based on the Consumer Price Index. They are referred to as Cost-of-Living Adjustments or COLAs. Your Social Security Disability benefits will be increased annually to reflect changes in inflation.
Recalculation
One other way to increase your SSDI benefits is by way of a recalculation. The Social Security Administration may recalculate your benefits due to clerical errors or earnings that were not credited in your initial computation. Nevertheless, a recalculation is not very common and may have to be requested.
Working 35 Years
In order to be eligible for disability payments, you must work for a certain amount of time in addition to meeting the SSA’s disability definition. The standard requirement to be eligible for Social Security retirement benefits is earning 40 work credits, with 20 of those being accumulated in the past ten years.
You may, however, be eligible for increased benefits if you worked for 35 years before you applied. This is because the Social Security Administration uses your highest 35 years of earnings to determine your payment amount.
Apply for Disability Benefits At Full Retirement Age
Retirement benefits from Social Security can begin as early as the age of 62. However, the amount of disability benefits you receive will be higher if you wait until you reach full retirement age before applying for them. Currently, 67 is the age of full retirement.
If you continue to work past the age of 70 or later, you will be able to raise your SSDI benefits. The reason for this is that you will have accrued extra credits toward your benefits payment since you worked beyond the age of retirement.
Apply for Spousal Benefits
Some members of your family may be eligible to receive benefits in the event of your retirement or disability. The spousal benefit can be half of your benefits, depending on the age of the spouse at the time of retirement.
However, if you apply for spousal benefits before reaching full retirement age, the Social Security Administration will lower the amount of benefits you receive.
Hire a Disability Attorney
Another effective strategy for increasing your SSDI benefit payments is to hire a disability attorney. An experienced attorney who specializes in disability law can examine your claim for disability benefits, guide you through the process, and advocate on your behalf.
According to one survey, 60% of individuals who applied for benefits with disability lawyers were approved, in contrast to thirty-four percent of those who did not have a lawyer.
Conclusion
While there is a maximum benefit amount that the SSDI program pays out, your exact benefit amount may be different, depending on several factors.
