Step 1: Understand Your Average Indexed Monthly Earnings (AIME)

The SSA uses your earnings history to calculate:

• Your work credits accumulated over your working years.
• AIME, which averages your lifetime earnings adjusted for inflation.
• These figures form the basis for your primary insurance amount (PIA).

Step 2: Calculate Your Primary Insurance Amount (PIA)

This is the monthly benefit amount the SSA will pay:

• PIA is determined using a formula with bend points applied to your AIME.
• It reflects a percentage of your average earnings, providing higher replacement rates for lower earners.
• Your initial SSDI benefit equals this PIA amount.

Step 3: Consider Cost-of-Living Adjustments (COLA)

After approval, your benefit:

• May increase annually based on inflation indexes.
• This helps maintain the real value of your payments over time.
• COLA applies to all SSDI recipients to offset rising costs.

Step 4: Factor in Dependent Benefits

If applicable, your monthly benefits may:

• Increase with additional payments for eligible family members, such as children or spouses.
• Depend on SSA’s assessment of your entire household situation.
• This can raise your total monthly income from SSDI.

Step 5: Know the Maximum SSDI Benefit Limits

The SSA places caps on benefits:

• Maximum monthly payments vary based on year of entitlement.
• Most recipients receive less than the cap, based on work history.
• Benefit reductions may occur if you receive other government assistance.