A common question clients at our law office ask is “how much will I receive in disability benefits?” There is no quick answer and as with most questions related to Social Security disability, the answer begins with, “it depends.”
There is not set amount someone receives in Social Security Disability Insurance (SSDI) payments as the monthly amount is based on what a worker pays into Social Security through payroll taxes, similar to how the monthly amount in Social Security retirement benefits work. The higher your income while you were working results in higher taxes paid to Social Security through the years, which equals a higher monthly payment when someone either retires for becomes disabled. Social Security uses a formula to calculate all this information in developing your Primary Insurance Amount (PIA).
Social Security calculates a worker’s PIA by examining three different earning amounts when the worker was earning a paycheck. The PIA formula for an individual who first becomes eligible for retirement or SSDI benefits for the year 2015 is the sum of:
(A) Ninety percent of the first $826 of the recipient’s average indexed monthly earnings, plus
(B) Thirty-two percent of the average indexed monthly earnings over $826 and through $4,980, plus
(C) Fifteen percent of the average indexed monthly earnings over $4,980.
Social Security also sets a monthly maximum benefit amount for SSDI no matter if a disabled worker would be eligible for more money based on their income history. For 2015 the monthly maximum SSDI amount is $2,663.
There is a secondary disability program known as Supplemental Security Income (SSI). This is a needs-based program for low income earners and the amount is determined based on a recipient’s income and asset allocation. The maximum monthly payment for an SSI recipient for 2015 is $733.
To learn more about how Social Security calculates PIA click here.
