How Is My Monthly Benefit Amount Determined Under SSI? (2024)

FAQs

How does SSI determine your monthly benefit? ›

Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. We apply a formula to this average to compute the primary insurance amount (PIA). The PIA is the basis for the benefits that are paid to an individual.

We: Base Social Security benefits on your lifetime earnings. Adjust or “index” your actual earnings to account for changes in average wages since the year the earnings were received. Calculate your average indexed monthly earnings during the 35 years in which you earned the most.

Each month, your “countable income” is determined. This is the total income (in cash and/or in kind) you receive. SSA subtracts your countable income from the FBR to determine your eligibility and calculate your monthly benefit amount.

Most people can receive an estimate of their benefit based on their actual Social Security earnings record by going to www.socialsecurity.gov/estimator. You also can calculate future retirement benefits by using the Social Security Benefit Calculators at www.socialsecurity.gov.

Each year, we review the records of all Social Security beneficiaries who have wages reported for the previous year. If your latest year of earnings is one of your highest years, we recalculate your benefit and pay you any increase you are due.

Where the overpayment is $1,000 or less and you file a request for reconsideration or waiver, Social Security will waive any collection of the over-payment (unless you were at fault in creating the overpayment). This is known as the SSI $1,000 Rule.

To calculate the monthly benefit amount, the insurer will consider the insured's average monthly income prior to becoming disabled. For example, if the insured's average monthly income is $4,000, and the policy offers a benefit amount of 60%, the monthly disability benefit would be $2,400 ($4,000 x 0.60).

Also, as you mentioned, Social Security sometimes includes assumed future year earnings amounts when providing estimates, so their benefit estimates are only as accurate as those future year earnings projections turn out to be. Do I Need To Contact Social Security About My Payment Date?

The amount you receive hinges on several factors, including your lifetime earnings, the age you start claiming benefits, and the number of years you've worked. Additionally, the Social Security Administration uses a formula to calculate your benefits, which considers your highest-earning 35 years.

Does everyone on SSI get the same amount of money? ›

Your amount may be lower based on your income, certain family members' income, your living situation, and other factors.

The program is paid for by general tax revenues -- not from the Social Security trust funds. The benefit amount is based on Federal and State laws which take into account where you live, who lives with you and what income you receive.

If you're planning for retirement, one of your key questions is how much you can earn from Social Security – what's the maximum you can get? As of January 2024, the maximum benefit you can receive at full retirement age is $3,822 per month.

If you become disabled before your full retirement age, you might qualify for Social Security disability benefits. You must have worked and paid Social Security taxes in five of the last 10 years.

The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67.

Generally, the day of the month you receive your benefit payment depends on the birth date of the person for whose earnings record you receive benefits. For example, if you receive benefits as a retired worker, we base your benefit payment date on your birth date.

All beneficiaries on a record will have the same payment day (the day of the birth of the person the Social Security number belongs to will decide the payment day) as follows. View the Schedule of Social Security Benefit Payments for 2024 and 2025.

Benefit estimates depend on your date of birth and on your earnings history. For security, the "Quick Calculator" does not access your earnings record; instead, it will estimate your earnings based on information you provide. So benefit estimates made by the Quick Calculator are rough.