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How does SSDI decide how much you get each month?

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TSflorida

Junior Member
What is the name of your state (only U.S. law)? FL

Does it go off what you've made your entire life? So what if someone goes on forever disability at age 30 vs someone who went on it for same exact reason but they were 60?
 
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quincy

Senior Member
What is the name of your state (only U.S. law)? FL

Does it go off what you've made your entire life? So what if someone goes on forever disability at age 30 vs someone who went on it for same exact reason but they were 60?
Your question is one that, if put "as is" in a search bar, will provide you with hundreds of links that provide the answer. Here are just two links that provide answers:

From Nolo: http://www.nolo.com/legal-encyclopedia/how-much-social-security-disability-ssdi-benefits-can-you-get.html

From the SSA: http://www.socialsecurity.gov/pubs/EN-05-10029.pdf

If you have a specific question (and did not post just to provide an advertising link ;)), please let us know.
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? FL

Does it go off what you've made your entire life? So what if someone goes on forever disability at age 30 vs someone who went on it for same exact reason but they were 60?
The 60 year old would receive a larger benefit than the 30 year old assuming that the 60 year old had worked their entire adult life.
 

Onderzoek

Member
PIA computation (Primary Insurance Amount) links below:

http://www.socialsecurity.gov/OP_Home/handbook/handbook.05/handbook-0503.html

http://www.socialsecurity.gov/OP_Home/handbook/handbook.07/handbook-toc07.html

Determine your elapsed years: For retirement benefits, it is the 40 years between age 22 and 62. For disability benefits it is the number of years between age 22 and entitlement date to disability benefits. Could be as few as two years for someone who becomes disabled at age 24.

Take the annual earnings in those years. Convert the dollar amounts to today's dollars (indexed). Drop the low five if there are 40 years; a complex formula depends the number of dropped years when elapsed years are less than 40.

Take the indexed earnings after the dropped years and add them up. Divide by the elapsed years. Divide by 12. That gives you the Average Indexed Monthly Earnings (AIME).

Apply the percentages based on the bend points. The higher the AIME, the lower the percentage bend points get. Diminishing returns. Social Security benefits are 'weighted' to pay a higher replacement amount to the lower income worker.

Then you have the Monthly Benefit Amount.

Personally, I would run it through a computer program.
 

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