Social Security Disability Insurance (SSDI) is a federal public assistance program that helps financially support people who become disabled. When applying for SSDI, many people want to know upfront how much they will be eligible to receive. An individual who can’t work because of a disability needs this information to ensure they will have sufficient income to meet their needs.

Determining the amount of benefits you qualify for under the SSDI program can be complex, as it and depends on your own contributions to Social Security or FICA during your working years. The severity of a disability has no effect on the amount of SSDI benefits you will be eligible for.

How Can I Estimate Potential SSDI Benefits?

The Social Security Administration (SSA) offers an online Benefits Calculator, as well as a more detailed benefits calculator that you must download and install on your computer to use. These calculators are some of the best tools to use to understand the amount of benefits you are likely to qualify for.

Both calculators will require you to enter certain information about your earnings record. The Benefits Calculator allows you to access your earnings record by creating an account or answering a series of questions intended to verify your identity.

How Does the Social Security Administration Calculate My Benefits?

The SSA uses your official earnings records to determine your SSDI benefit amount. It bases the calculation on your lifetime average covered earnings before you became disabled. In this case, “covered” means the earnings at your jobs where your employer deducted money from your wages to pay into Social Security or FICA on your W2 statement and tax filings.

If you are self-employed using Form 1040 or an independent contractor with Form 1099 earnings, you presumably will have paid into the system through self-employment taxes on your net profit.

If you have paid into the system, the SSA considers you an insured worker.

Earnings are indexed by computing an insured worker’s benefit. Your SSDI calculation for monthly benefits uses these average covered earnings over time. The SSA formulary then uses these amounts to determine your primary insurance amount (PIA). This PIA is the benefit amount (before rounding down to the next lower whole dollar) a person receives at normal retirement age.

Note that there are PIA formula bend points. These are the respective percentages of portions of averaged indexed monthly earnings contingent on the year a worker turns 62, becomes disabled before 62, or dies before 62.

You may want to seek assistance in making sense of these formulas. A special needs planning attorney can help you understand how the SSA calculates SSDI benefits. They can explain the complex rules and formulations used to determine the dollar amount of your benefits.

What Is the Average Payment?

In 2024, the SSA 3.2 percent cost-of-living increase bumped the average monthly SSDI benefit by about $48. This means the average monthly benefit increased from $1,489 to $1,537, helping to offset inflation to some extent.

What Will Reduce My Social Security Disability Insurance Benefit?

If you currently receive other government benefits, they may reduce your SSDI benefit amount. Public disability benefits, worker’s compensation, and pensions you receive from employment not covered by Social Security can reduce the SSDI benefit you may be otherwise eligible to receive.

Retroactive Payments

Filing a claim to receive SSDI can be a lengthy process. Once the SSA approves your application and calculates your monthly benefit, you may be eligible to receive a back pay award. The back pay date depends on the day you applied for benefits and the date your disability started as determined by the SSA.

Work With Your Special Needs Planning Attorney

A great deal is at stake when applying for SSDI benefits, and nothing will replace the skills of an attorney with experience in this area.

If you would like to speak with an experienced special needs planning attorney regarding your situation or have questions about something you have read, please do not hesitate to contact our office at 1 (800) 680-1717. We look forward to the opportunity to work with you.