How much does Social Security pay an individual each month? This article is for you if you are asking this question.
Estimating your Social Security benefits might be challenging, especially when you are several years away from retirement.
However, knowing how your benefit will be determined might help you plan your retirement budget and increase your future Social Security benefits.
This article will thus discuss how Social Security payments are calculated. Read on to find out how to calculate your Social Security benefit and how much you can expect in monthly payments.
How Much Does Social Security Pay an Individual Each Month?
So, how much does Social Security pay an individual each month? Typically, your Social Security benefit is based on your lifetime earnings from jobs where you paid Social Security taxes. That means the higher the income, the higher the benefit- up to a specific limit.
Some criteria, most notably the age at which you apply for benefits, affect how much you are eligible to. For example, the projected average Social Security retirement payout in 2023 is $1,827 per month.
For someone who applies for Social Security in 2023 at full retirement age (FRA), the maximum benefit — the highest a single retiree may receive — is $3,627 per month. FRA is the age at which you are eligible for 100% of the benefit based on your earnings history.
For those born in 1956, 1957, or after, the FRA is 66 and 4 months, 66 and 6 months, progressively increasing to 67 for those born in 1960 or later.
How Can You Find Out Your Monthly Disability Benefits?
You can only know your actual amount when you apply, but there are ways to get a general idea beforehand.
The easiest method is to use the Social Security Administration’s (SSA) Benefits Calculator or check your online Social Security account. The calculator requires your average yearly salary, while the latter uses your earnings history on file with the SSA.
Both tools estimate the monthly payments you may receive if you begin collecting Social Security benefits at 62, the earliest age at which you can apply for retirement benefits, at full retirement age, and at age 70. Social Security penalizes you for filing early between 62 and FRA while between FRA and 70, it rewards you for waiting by increasing your pension.
For example, using the calculator, a person born on January 1, 1961, with an average yearly salary of $50,000, would receive a $1,386 monthly benefit if they apply for Social Security at age 62, $1,980 at FRA (in this case, age 67), or $2,455 at age 70.
The calculator tool may also provide values for every age in between, evaluate the effect of working longer on your benefits, and assist you in creating a budget for your later years of life.
Contact the SSA at 800-772-1213 for a basic benefit estimate. Regardless of where you got the numbers from, be aware that these are estimates and not assurances.
Your actual benefit may fluctuate, perhaps dramatically based on fluctuations in your wages, cost-of-living adjustments, whether you continue working after filing for benefits, and changes in the Social Security statute.
When Will Social Security Disability Benefits Start?
If your claim is approved, you will receive your first payment six months after the onset of your disability.
For example, if you became disabled on February 10, 2023, your first payment will come in August 2023. August is the sixth month since you suffered a disability.
Each benefit from Social Security is paid one month after it is due. You could receive your benefits, for instance, for November in December. As long as you continue to get benefits, the same structure applies.
How Can You Calculate Your Monthly Benefits?
The SSA calculates your benefits using a complex formula. The monthly payments differ from one person to another. How much you’ve contributed in Social Security taxes will determine the following:
- Your average indexed monthly earnings (AIME) are the total amount you have made over time. AIME includes income that you have paid Social Security taxes on only.
- The SSA estimates your primary insurance amount (PIA) using your AIME. The PIA serves as the base number in your calculation.
- The SSA uses your PIA to calculate your benefits.
You can see that the method is complex. Your Social Security Statement is the most straightforward way to review your earnings history. Log into the SSA website to view this online.
Disability benefits can be ambiguous. Speak to a local Social Security office or a Social Security Disability attorney to learn more about calculating your benefits.
Can Other Payments Affect Your Disability Pay?
Yes. The programs below might lower your Social Security disability payments:
- Workers’ compensation
- Pensions from employment that Social Security does not cover – If two-thirds of your government pension is more than your Social Security benefit, your benefit could be reduced to zero
- Governmental disability benefits
- Other government benefits
If the SSA discovers that another program offers benefits, it may reduce your payment. The benefits cannot exceed 80% of your average pre-disability salary.
Can You Get Back Payments?
Back payments offer benefits for the period between your disability and the approval of your claim. Backpay depends on the following:
- Your application
- When your disability first manifested
- Your monthly disability payment
- The initial waiting period
You could qualify for back pay going back to the application date. These payments might help you make up for any income shortages. If you have concerns regarding back payments, speak with a Social Security Disability attorney.
Medicare and Social Security Disability
The SSA will register you for Medicare once you have received disability benefits for two years. It consists of two parts:
- Hospital insurance for inpatient treatment and aftercare
- Medical insurance for outpatient services, doctor appointments, and other services
Hospital insurance is free. On the other hand, you must pay a monthly premium for medical insurance, but this is optional. Most SSD candidates carry both.
Your state may occasionally pay for Medicare premiums and other expenses. If your salary is modest, this is very likely to happen.
How Do You Know If You’re Eligible for Disability Benefits?
Social Security Disability may be available to you if:
- Contributed to the Social Security system through your salary
- You have a medical disability
- You can no longer work due to your disability
The SSA will take your employment history and health into account. It evaluates your claim using a five-stage process.
1. Are you working
You will not be eligible if your monthly income exceeds a specific level. The SSA will not classify you as disabled. This income amount, per the 2023 fact sheet, is $1,470. You will go on to question two if your income is lower than this predetermined amount.
2. Do you have a “severe” condition?
Your illness must be acute enough to prevent you from performing your crucial functions for at least a year. A severe condition limits you from doing things like:
- Sitting
- Standing
- Lifting
- Walking
- Remembering
If your answer to these questions is “yes,” move on to the next question.
3. Does your condition appear on the list?
The list of impairments the SSA deems to be disabling is available online. The individual reviewing your claim will check whether your condition appears on the list. If you have a disabling condition, ask yourself the next question.
4. Can you do the work you did before?
The SSA will not consider you disabled if you can still perform in your previous job or position. Your condition must make working impossible.
5. Can you do another type of work?
The SSA will examine your ability to do new or different job types. It will approve your claim if your answer is “no.” You must also have accrued enough work credits to be eligible. Generally speaking, that means:
- 40 work credits in total
- 20 of these credits were earned within the last ten years before you became disabled.
Most individuals fulfill the work criterion if they have worked all ten years. Speak with an experienced attorney if you are uncertain.
Speak to a Social Security Disability Attorney Today!
So, how much does Social Security pay an individual each month? The bottom line is that you can get up to $1,827 monthly payments.
However, getting Social Security Disability benefits is not easy. You may face difficulties being approved for benefits even if you qualify.
At Legal Giant, we can help. We partner with the best Social Security Disability attorneys in the country who can help you calculate your retirement benefit and file a claim.
Our partner attorneys can also examine your claim, help you gather evidence, or even appeal a denial.
Contact us at 833-641-1650 today for a free, no-obligation consultation.
