Many people believe their SSDI payment is set in stone once they are approved. While it is true that your Average Indexed Monthly Earnings (AIME) determines the base amount, this does not tell the whole story. Several administrative rules, timing considerations, and related benefit programs can impact the money you actually receive. Our Richmond social security disability lawyers are here to help you see where these opportunities exist.
While you cannot simply call the SSA and request a higher rate, there are specific, lawful avenues to maximize the total value you receive. These include ensuring you receive the maximum amount of “back pay” you are due, understanding how cost-of-living adjustments (COLAs) will affect your income over time, and exploring whether you qualify for supplemental programs such as Supplemental Security Income (SSI).
The goal is not to change the SSDI formula itself, but rather to ensure you are taking advantage of every benefit and related program available to you. For instance, knowing how the rules for limited work affect your payments can make a difference.
By focusing on these often-overlooked details, you can significantly improve your overall financial stability. The team at Hunter | Everage is here to explain these details and help you pursue all available support.
How SSDI Benefits Are Calculated
SSDI benefits are calculated primarily based on your lifetime average earnings that were covered by Social Security. This means the amount you receive each month depends on how much you worked and paid Social Security taxes over your career, up to the point you became disabled.
The SSA uses a formula to find your Average Indexed Monthly Earnings (AIME). “Indexed” means your past earnings are adjusted to reflect changes in general wage levels over time. Once the AIME is calculated, the SSA applies a specific formula to it to determine your Primary Insurance Amount (PIA). Your PIA is essentially your full monthly SSDI benefit amount.
It’s important to know that SSDI is not based on how severe your disability is or how much money you currently have. Because the benefit is tied to your work history, two people with the same disability could receive different monthly payments if one earned significantly more than the other during their working years.
Can You Work and Still Boost Your Disability Income?
The SSDI program is designed for people who cannot work due to a disability. Working too much can stop your benefits entirely. However, the SSA has “work incentives” to help beneficiaries test their ability to return to work.
During the Trial Work Period (TWP), you can work and receive full benefits, regardless of your earnings, for up to nine months. After the TWP, the SSA has a rule called “Substantial Gainful Activity” (SGA). If your income exceeds the SGA limit (which changes each year), your benefits will generally stop.
While working past the SGA limit will stop your SSDI, any work history you accumulate before becoming disabled, or during permitted work periods, contributes to your total lifetime earnings, which affects the PIA formula. The primary way to receive a higher SSDI benefit is through your historical earnings, not through working while disabled.
Back Pay and Retroactive Benefits: How to Increase My SSDI Benefits
When your SSDI claim is approved, you are often eligible for a lump-sum payment of “back pay” or “retroactive benefits.” This is not an increase in your monthly rate, but it is a significant increase in your total payment.
- Retroactive Benefits: You can get benefits for up to 12 months before the date you applied, provided you were disabled during that time. To maximize this, file your application as soon as you become disabled.
- Back Pay: This covers the time between the date you applied and the date your claim was approved. The process can take a long time, so a large lump-sum payment can accumulate.
A lawyer can help you prove your disability began earlier, helping you secure the maximum amount of back pay and retroactive benefits possible. This is a key part of how to increase disability benefits upon approval.
The Role of COLAs (Cost-of-Living Adjustments) in SSDI
The most reliable way your monthly SSDI payment increases over time is through the Cost-of-Living Adjustment (COLA). A COLA is an increase in benefits paid out by the SSA to account for inflation, which is the general rise in the prices of goods and services. Without COLAs, the spending power of a fixed benefit amount would decline each year as the cost of living rises.
The SSA determines the COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If the CPI-W shows inflation during a specific period, a corresponding percentage increase is applied to all SSDI and other Social Security benefits. This adjustment is put into effect automatically in January of the following year.
The COLA ensures your disability payment keeps pace with the cost of food, housing, and other necessities. It does not reflect a change in your medical condition or your work history; it is simply a mandated way to preserve the real value of your benefits. This adjustment applies to everyone receiving SSDI and is the main reason your monthly check may be slightly higher each year.
Can You Qualify for SSI or Other Benefits Too?
SSDI is based on your work history and contributions to Social Security taxes. Supplemental Security Income (SSI) is a separate program that provides benefits based on financial need. Someone can qualify for both programs at the same time, which is known as receiving “concurrent benefits.”
This dual eligibility usually happens if your SSDI payment is very low. Since SSI has strict limits on income and assets, if your SSDI benefit amount is below the maximum SSI benefit rate, you may receive a supplementary payment from SSI. This helps bring your total monthly income up to a certain financial standard.
Qualifying for these programs also offers important advantages for healthcare. SSDI beneficiaries become eligible for Medicare after a waiting period. SSI beneficiaries usually qualify for Medicaid right away in most states.
Contact an Experienced Richmond Social Security Disability Lawyer
Are you wondering how to increase social security disability payments? Trying to understand the rules and regulations surrounding Social Security benefits can be confusing. If you are struggling with a disability application, an appeal, or simply trying to get the highest payment possible, getting legal help is a smart first step.
The attorneys at Hunter | Everage have the experience to review your earnings record, seek the maximum retroactive pay, and help you determine eligibility for concurrent SSI benefits.
Call Hunter | Everage at 704-377-9157 to request a consultation.