What Determines your Disability Benefit Amount?
Every year, millions of Americans suffer from a disabling condition which can interfere with their ability to work and earn an income. As a result, these disabled individuals must rely on Social Security Disability benefits to make ends meet. Many of the people who apply for Social Security Disability benefits are uncertain as to how much money they will receive each month from the Social Security Administration.
There are, however, ways that you can estimate what you might expect from the Social Security Administration.
Determining Your Benefits
How much money you receive in Social Security Disability benefits each month will depend on a variety of factors including which disability benefits you are eligible for (SSI or SSDI) and how much money you earned and paid into the Social Security system.
The Average Disability Benefit
Social Security disability benefit amounts vary on a case to case basis. As of 2008, the average SSDI payment to individuals who qualified for Social Security Disability benefits was $1,063 per month. The average SSI benefit was $439 per month. The amount you receive if you are eligible for disability benefits may be higher or lower than these amounts depending on your past earnings, your current earnings and the number of dependents living in your household.
Since the SSI program is a needs-based program, some Social Security Disability recipients can qualify for both SSI and SSDI benefits depending on their household income and the number of dependents living in the household.
Your SSDI benefits are based on the amount of income on which you have paid social security taxes. Your average earnings are called your Average Indexed Monthly Earnings (AIME). Using your AIME, the SSA will calculate your Primary Insurance Amount (PIA). As of 2014, the PIA is calculated by taking 90% of AIME under $816, 32% of AIME between $816 and $4917, and 15% of AIME greater than $4917. The final PIA amount is the maximum amount of SSDI benefits that you are entitled to.
To learn more about your benefits contact Renda Law in Tacoma today. We are specialize in Social Security law.