Benefit Calculations And Maximization

When you are unable to work due to a disability, the benefits available from the Social Security Administration can make all the difference in your ability to support yourself and your family. For planning purposes, it is important to understand how the amount of your benefits will be calculated. You also need to know what you can do to maximize your benefits.

A knowledgeable and compassionate disability attorney can assess your situation, explain the benefits available, and work to help you demonstrate your qualifications. The legal team at Burgess & Christensen is committed to help you gain the full benefits available, and we can assist right from the start or step in to help if a problem arises after you have applied for benefits.

Understanding Disability Benefits

The calculations for disability benefits are different depending on the program that the benefits are paid under. Individuals who are unable to work can receive benefits through either the Social Security Disability Insurance Program (SSDI) or the Supplemental Security Income Program (SSI), both of which are administered by the Social Security Administration. The programs are completely different, so the eligibility standards are different, and the way benefits are calculated also differ. (However, the standards the Social Security Administration uses to determine whether your disability prevents you from working are the same.) Some individuals qualify to receive benefits under both programs, but benefits provided under one program could be offset by amounts received through the other program.

SSDI

SSDI is an insurance program that pays benefits to workers based on what they have earned in the past. To be eligible, you have to have worked a certain number of years because your payroll taxes essentially pay the premiums for this insurance. If you worked for at least ten years or you became disabled early in your work career, there’s a good chance you have paid sufficient taxes to qualify.

SSI  

The SSI program provides assistance for individuals who have very limited resources to live on. You don’t need to have ever worked to qualify, but you will need to show that you don’t have much income and that you don’t own many assets that you could use to pay basic living expenses.

How Benefits Are Calculated for SSDI

The benefits a worker is eligible to receive through the SSDI program are not based on the severity of their disability but on their work history. Once you earn a certain amount each year, you establish basic eligibility for the program, but the more you earn increases the amount of benefits you could receive.

Formulas used to calculate benefits for each worker approved for benefits are quite complex. The Social Security Administration starts by considering your earnings during a particular period of time and then averaging those earnings into an Average Indexed Monthly Earnings amount (AIME). From there, they calculate a Primary Insurance Amount (PIA) based on “bend points” which can change each year. The maximum available in 2024 is $3,822 per month. While most people do not receive this much, it is important to be aware of the ability to receive back payments to cover the time between the onset of the disability and the date of approval for benefits. Our team works hard to help you recover the maximum benefits available.

How Benefits are Calculated for SSI

The Social Security Administration takes a different approach to calculate benefits available through the SSI program. They start with a set federal benefit rate, which changes each year. Then, they subtract any income you have that is considered “countable” under program rules. 

For 2024, the federal income benefit amount is $943, so that is the maximum amount you can receive through the program each month (unless you live in a state that supplements this amount), in addition to any back payments you may be owed.

Find Out How Burgess & Christensen Can Help You Maximize Your Disability Benefits

It can be very challenging to understand and receive the full amount of disability benefits available through the Social Security Administration. Allow the dedicated team at Burgess & Christensen to assist. We focus our practice on helping individuals gain the disability benefits they need, and we help during all stages of the application process. If your application for benefits has been denied, we can help you appeal to get a better outcome. To find out what may be possible in your case, contact us today for a free consultation.