How to Increase Social Security Disability Payments?

Social Security Disability Insurance (SSDI) is a vital resource for many individuals who are unable to work due to a disability. Understanding how benefits are calculated and learning strategies to increase the benefit amount can significantly impact financial stability. In this article, we explain what factors determine the amount of your SSDI benefits and outline several ways beneficiaries can possibly increase their payments.

Sackett and Associates is a California based disability law firm focused exclusively on helping people with disabilities receive the Social Security benefits to which they are entitled. We serve clients throughout the U.S. and we apply our experience to guide them through the disability application and approval process. Contact us today if you need help with your Social Security Disability issues.

How SSDI Benefits Are Determined

The amount of money a disabled worker gets from Social Security Disability Insurance (SSDI) is based on their average lifetime earnings before they became disabled. Here’s a straightforward explanation of how this amount is calculated:

1. Earnings History: Social Security looks at the worker’s earnings over their entire working life. They focus on the years when the worker earned the most money.
2. Average Indexed Monthly Earnings (AIME): To make sure the earnings reflect today’s money value, Social Security adjusts the past earnings for inflation. They then take the highest-earning 35 years and calculate the average monthly earnings from those years. This average is called the Average Indexed Monthly Earnings (AIME).
3. Primary Insurance Amount (PIA): The AIME is used to find the Primary Insurance Amount (PIA), which is the basis for the SSDI benefit. The PIA is determined using a formula that applies different percentages to different portions of the AIME:
   1. 90% of the first portion of the AIME
   2. 32% of the next portion of the AIME
   3. 15% of the remaining portion of the AIME

For example, if the AIME is $5,000, the calculation might look something like this (using example bend points for 2024):

1. 90% of the first $1,200 = $1,080
2. 32% of the next $4,800 ($5,000 – $1,200) = $1,536
3. Add these two amounts together: $1,080 + $1,536 = $2,616

The PIA in this example would be $2,616. This amount is the monthly SSDI benefit before any other adjustments.

1. Family Benefits: Family members, such as spouses or children, may also qualify for benefits based on the worker’s record. This can increase the total amount received by the household.
2. Adjustments: There are annual cost-of-living adjustments which help the benefits keep up with inflation.

This formula helps ensure that the benefits reflect both the worker’s earnings and the current cost of living.

Ways to Increase SSDI Benefits

Increasing SSDI benefits can be challenging since the primary factors are tied to lifetime earnings and the SSA’s calculation methods. However, there are several strategies that beneficiaries can consider to maximize their benefits:

1. Utilize the “Family Maximum Benefit” Provision: SSDI allows for additional benefits to be paid to family members, such as a spouse or child. The total family benefits can range from 150% to 180% of the disabled worker’s PIA. Ensuring that eligible family members apply for benefits can increase the total household income.
2. Review Your Earnings Record: Mistakes in your earnings record can result in lower SSDI benefits. Regularly review your Social Security Statement online to ensure all your earnings have been accurately recorded. Correct any errors you find that understate your taxed earnings as soon as possible.
3. Work While Receiving Benefits: Engaging in part-time work can provide additional income without necessarily affecting SSDI benefits. The SSA has specific guidelines on how much a beneficiary can earn without it impacting their disability status, known as the Substantial Gainful Activity (SGA) limit. In 2024, the SGA limit for non-blind individuals is $1,550 per month and $2,590 for blind individuals. Earnings below these limits may not affect your SSDI benefits.
4. Explore Other Assistance Programs: Beneficiaries may qualify for additional assistance programs that can supplement SSDI benefits, such as Supplemental Security Income (SSI), Medicaid, or state-specific disability programs. Combining benefits from these programs can provide a more comprehensive financial support package.
5. Consider the “Trial Work Period”: The SSA created a Trial Work Period (TWP) to allow beneficiaries to test their ability to work for up to nine months without losing SSDI benefits. During this period, there are no earnings limits. The nine months of TWP do not need to be consecutive. They can be spread over a 5-year period. Successfully using a TWP can lead to higher income without immediate impact on SSDI benefits.

The Importance of Timing and Application

When applying for SSDI, the timing can also affect the benefit amount. Here are a few considerations:

1. Apply as Soon as Eligible: Applying for SSDI as soon as you become eligible can help ensure you receive the maximum benefit amount. Delays in applying can result in lost benefits. Retroactive benefits are available for those who can establish that the onset of their disability eligibility predates the date of their application, but there is a 12-month limit for these payments.
2. Age Considerations: While SSDI benefits are based on disability rather than age, your age at the time of application can still have implications. For instance, those approaching retirement age may have different strategies compared to younger applicants.
3. Understanding the Impact of Other Benefits: Certain benefits, such as workers’ compensation or public disability benefits, can affect SSDI payments. Understanding how these benefits interact with SSDI can help in planning and maximizing overall income.

For more detailed information about how you can increase your SSDI benefits, contact Sackett Law and speak with one of our experienced disability lawyers or other specially trained disability staff members. As with any financial planning, consulting with a knowledgeable advisor who concentrates exclusively on Social Security benefits will provide reliable guidance and ensure you are making the most of the available resources.