How to Determine Your Social Security Disability Amount

Social Security Disability Insurance (SSDI) is a federal insurance program designed to provide financial benefits to individuals who can no longer engage in substantial gainful activity due to a severe medical condition. This condition must be expected to last at least 12 months or result in death. The Social Security Administration (SSA) manages SSDI. The monthly benefit amount depends on past earnings and contributions to the Social Security system.

Understanding Your Earnings Record

The foundation for determining Social Security Disability benefits lies within an individual’s earnings record. The SSA meticulously tracks wages and self-employment income throughout a person’s working life. These earnings, known as “covered earnings,” are the amounts on which Social Security taxes, or FICA taxes, have been paid.

The SSA uses this detailed record to calculate eligibility for benefits and the eventual payment amount. Your Social Security record should reflect all earnings up to the annual taxable maximum.

To account for changes in average wages and the cost of living, the SSA “indexes” past earnings. This process adjusts earlier earnings to reflect current wage levels, ensuring that benefits accurately reflect a worker’s lifetime contributions.

Calculating Your Primary Insurance Amount (PIA)

The Primary Insurance Amount (PIA) represents the basic monthly benefit an individual is entitled to receive before any adjustments. The calculation of your PIA begins with determining your Average Indexed Monthly Earnings (AIME).

To compute AIME, the SSA takes your highest 35 years of indexed earnings. If an individual has fewer than 35 years of covered earnings, zero earnings years are included in the calculation, which can lower the AIME. The sum of these highest 35 years of indexed earnings is then divided by 420 months (35 years multiplied by 12 months) to arrive at the Average Indexed Monthly Earnings.

Once the AIME is established, the PIA is calculated using a progressive formula involving “bend points.” For example, for individuals becoming eligible in 2025, the PIA is calculated as 90% of the first $1,226 of AIME, plus 32% of AIME between $1,226 and $7,391, plus 15% of AIME over $7,391. These specific dollar amounts for the bend points are adjusted annually based on changes in the national average wage index.

Accessing Your Benefit Estimate

Individuals can find their estimated Social Security Disability benefit amount through the Social Security Administration’s official website. Creating or logging into a “my Social Security” account provides secure access to your online Social Security Statement. This statement contains a detailed record of your earnings history and personalized estimates for various benefits, including disability.

Within the “my Social Security” account, users can review their reported earnings to ensure accuracy, which is particularly important for self-employed individuals. The online statement also provides an estimated disability benefit amount based on your work history and contributions.

Factors That Can Affect Your Payment Amount

While the Primary Insurance Amount (PIA) establishes the base benefit, certain factors can modify the actual monthly payment received. One such modification is the “family maximum” rule. This rule limits the total amount of benefits that can be paid to a family based on one worker’s earnings record, typically ranging from 150% to 180% of the worker’s PIA.

Another potential adjustment involves the “Workers’ Compensation Offset.” If an individual receives both Social Security Disability benefits and workers’ compensation benefits, the combined total cannot exceed 80% of their average current earnings before becoming disabled. Should the combined amount exceed this threshold, the Social Security Disability payment will be reduced, or offset, to bring the total benefits within the allowable limit.