How Are SSDI Benefits Calculated?
Are you wondering how much you may be eligible for in Social Security Disability Insurance (SSDI) benefits?
My name is Kaitlin Wildoner, and I’m an attorney who helps disabled clients obtain their disability benefits as quickly as possible so they can focus on getting better.
Today, we’re going to discuss how SSDI benefits are calculated.
Work Credit Requirements for SSDI
First, to qualify for SSDI, you must have earned a certain number of work credits through your prior employment. The number of credits that are required depends on your age at the time you become disabled, but typically, you will need:
- 40 credits, with
- At least 20 of those 40 credits earned within the last 10 years.
How the Social Security Administration Calculates Benefits
The Social Security Administration (SSA) calculates your Average Indexed Monthly Earnings (AIME) by:
- Adjusting your past earnings for inflation, and then
- Averaging your highest earning years, typically the highest 35 years of your work.
Auxiliary Benefits for Family Members
Additionally, certain family members—such as a spouse or dependent children—may be eligible for auxiliary benefits based on your work record. These benefits are:
- Calculated as a percentage of your Primary Insurance Amount (PIA), and
- Subject to specific rules.
There is a maximum limit to the total family benefit that can be paid based on your work record, which is typically between 150% to 180% of your Primary Insurance Amount.
Cost of Living Adjustments
SSDI benefits are subject to annual Cost of Living Adjustments (COLAs) based on changes in the Consumer Price Index, which can increase the benefit amount to account for inflation.
Special Rules for Blind Individuals
Blind individuals may have their benefits calculated differently, with higher Primary Insurance Amounts and family benefit limits.
Estimating Your Benefit Amount
If you want to estimate your potential SSDI benefit amount or have questions about your specific circumstances, you can:
- Contact the Social Security Administration directly, or
- Use their online calculators and tools.
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