Understanding Social Security Disability Insurance (SSDI) benefits permits individuals to make informed decisions when they are considering applying for disability benefits. The amount you can receive varies based on multiple factors, including your work history and earnings. In this article, we explain the maximum amount someone can receive in SSDI benefits and the average payment most people receive.  We’ll also explain the method Social Security Administration (SSA) uses to calculate each person’s benefits.

Maximum SSDI Benefit Payments

As of May 2024, the maximum monthly SSDI benefit for an individual is $3,822. It is important to note that this maximum amount is only received by the highest-earning workers. Achieving the maximum benefit requires a long history of high earnings subject to Social Security taxes. Most claimants receive considerably less than this amount.

Average SSDI Benefit Payments

The average monthly SSDI benefits for 2024 is approximately $1,537. This average gives a more realistic expectation for most individuals. The exact amount you will receive depends on your lifetime earnings and contributions to the Social Security system.

Determining SSDI Benefits

The SSA calculates SSDI benefits using a formula based on your Average Indexed Monthly Earnings (AIME) and Primary Insurance Amount (PIA). Here’s a detailed look at the process:

Step 1: Calculate AIME

  1. Identify Earnings: The SSA first identifies the years in which you had earnings subject to Social Security taxes. Not all earnings are considered; the SSA uses only your 35 highest-earning years, adjusted for inflation.
  2. Index Earnings: These earnings are indexed to account for changes in average wages over time. This step ensures that the benefit calculation reflects the value of your past earnings in today’s dollars.
  3. Average Indexed Monthly Earnings: The SSA averages your highest indexed earnings over your 35 highest earning years to compute your AIME. This figure represents your average monthly earnings over your working life.

Step 2: Apply Bend Points

The SSA uses a formula with fixed percentages and bend points to determine your PIA from your AIME. Bend points are the portions of your AIME that are multiplied by different percentages. For 2024, the bend points are:

  • 90% of the first $1,174 of your AIME
  • 32% of your AIME over $1,174 and through $7,078
  • 15% of your AIME over $7,078

Here’s how it works in practice:

  1. First Segment: Multiply the first $1,174 of your AIME by 90%.
  2. Second Segment: Multiply the amount of your AIME between $1,174 and $7,078 by 32%.
  3. Third Segment: Multiply any amount of your AIME over $7,078 by 15%.

Add these three amounts together to get your PIA. This amount is your monthly SSDI benefit before any applicable deductions or adjustments.

Example Calculation

Let’s consider an example with an AIME of $4,000:

  1. First Segment: $1,174 x 90% = $1,056.60
  2. Second Segment: ($4,000 – $1,174) x 32% = $904.32
  3. Third Segment: $0 (since $4,000 does not exceed $7,078)

Total PIA: $1,056.60 + $904.32 = $1,960.92

In this example, the estimated monthly SSDI benefit is approximately $1,960.92 assuming no other deductions or adjustments. Rounding down to the next lowest number divisible by 10 brings it to $1,960.90.

Additional Factors Affecting SSDI Payments

While the PIA calculation provides a baseline for SSDI benefits, several additional factors can influence the actual amount you receive:

  1. Cost-of-Living Adjustments (COLAs): Your SSDI benefits receive an annual cost-of-living adjustment to keep up with inflation. These adjustments can, and usually do, increase your monthly benefit amount.
  2. Deductions for Other Disability Benefits: If you receive disability benefits from another public source, such as workers’ compensation, your SSDI benefits will be reduced to comply with the 80% rule. This rule ensures that the total amount of your public disability benefits does not exceed 80% of your average current earnings before you became disabled. Contact an experienced disability lawyer to find out how you can reduce the amount of benefits offset by other disability payments.
  3. Family Benefits: In some cases, your family members may also qualify for benefits based on your earnings record. This can include your spouse, children, or dependent parents. The total family benefits, however, are subject to a family maximum, which typically ranges between 150% and 180% of your PIA.

It is always advisable to consult with a knowledgeable Social Security Disability to understand how these calculations apply to your specific situation and to ensure you receive the benefits you are entitled to. At the disability law firm in Ohio, we have extensive experience helping disabled workers obtain the full SSDI and other benefits they deserve.