The Social Security Disability Insurance (SSDI) amount varies from person to person and is determined based on your average lifetime earnings. The Social Security Administration (SSA) takes into account the applicant’s highest-earning years, so, the higher your past earnings, the higher your monthly benefit will be. It’s not intended to totally replace your earnings, but just a part of it so, you’ll have to complement it with some other resources.
To be eligible for SSDI, first and foremost, you must have a disability that prevents you from engaging in what the SSA defines as a substantial gainful activity (SGA). The disability should be expected to last at leas for at least a year or result in decease of the individual. Additionally, you must have earned enough work credits by paying Social Security taxes to qualify. The number of required work credits depends on your age at the time of disability onset.
SSDI Payment Schedule for September 2023
The SSA releases an updated SSDI benefit payment schedule every year to adjust for changes in the cost of living, and the benefits are typically paid on a monthly basis, whether you get a paper check or a bank deposit. The exact payment date depends on your birthdate. Payments are made in arrears, meaning you receive the benefit for the previous month.
Payments are divided into four dates throughout the month. On September 1st, which is the first Wednesday of the month, the first group of beneficiaries was paid, which are those who have been receiving SSDI since before May 1997. The second group received their payment on September 13th, and they are those whose birthday falls between the 1st and 10th of any given month.
SSDI Payments: Two Rounds of Payments Already Sent, Two More to Come
The third group is the next on the list, and will receive their fresh money on the third Wednesday of September, that is, the 20th. They are the ones who have a birthday between the 11th and 20th of any given month. The fourth and last group is of those whose birthdates fall somewhere in between the 21st and the 31st of any given month. Those will find the check in the mailbox, or the bank deposit, on September 27th.
As of 2023, the maximum Social Security Disability Insurance benefits are $3,627 per month for qualifying beneficiaries. In addition to these two maximum payment thresholds, the typical monthly disability benefit for a disabled worker eligible for SSDI assistance in 2023 amounts to approximately $1,470.
How long do I need to be disabled in order to be eligible for SSDI?
To qualify for Social Security Disability Insurance (SSDI), you must meet several criteria, including having a medical condition that adheres to the Social Security Administration’s strict definition of disability and having earned enough credits through FICA taxes paid to the Social Security Administration.
The Social Security Administration defines a disability as a condition that prevents you from performing substantial gainful activity and is expected to last for at least 12 months or result in death. This means you need to be unable to work due to your disability for at least a year.
In addition, the number of work credits you’ve earned is crucial. You earn these credits through paid work. The number of credits you need to qualify for SSDI benefits depends on your age when you become disabled. For example, younger workers may qualify with fewer credits, but generally, a worker needs 40 credits, 20 of which must have been earned in the last 10 years before becoming disabled.
How is the SSDI amount determined based on my earnings?
The Social Security Disability Insurance (SSDI) benefit amount is determined based on your lifetime average earnings covered by Social Security. This calculation process is complex and involves several steps:
- Calculation of Average Indexed Monthly Earnings (AIME): The Social Security Administration (SSA) calculates your AIME by taking your highest-earning 35 years, indexing it to account for wage inflation, and then averaging it on a monthly basis. If you’ve worked for fewer than 35 years, zeros are factored into the average for those missing years, which can lower your AIME.
- Application of the Primary Insurance Amount (PIA) formula: The SSA then applies the PIA formula to your AIME. The PIA formula is a progressive formula that gives more credit to lower-income workers. The formula is broken into three parts, each applying a different percentage to portions of your AIME. The exact dollar amounts change each year due to inflation
- Adjustments: The SSA may apply certain adjustments based on factors like the age at which you start receiving benefits and any other public disability benefits you receive.