According to the Social Security Administration, almost 1 in 3 young adults will require benefits before they reach retirement age. It is therefore important to understand the differences between Social Security Disability (SSDI) and Supplemental Security Income (SSI).
In order to qualify for SSDI,
There is also a significant backlog in processing applications with the average wait for a determination decision lasting 240 days without an appeal and 627 days if an appeal is necessary.
It is based on your lifetime average earnings covered by Social Security. The Social Security Administration (SSA) calculates the average monthly income over your career and pays differing amounts based on how much a person has paid in during that time.
Up to five of a disabled worker’s elapsed years with the lowest earnings are disregarding in calculating their average indexed monthly earnings. This feature reduces the effect of years of lower—or zero—earnings on benefits with the intent of recognizing that disabled workers have lost years of valuable work credits that cut into their benefits.
Currently, employers and employees both pay 0.9% of their earnings up to the cap of $132,900 yearly into the SSDI trust fund.
The highest amount SSI pays an individual (Federal Benefit Rate) is $771 a month ($1,157 for a married couple) with benefits decreasing based on monthly earnings and other benefits of recipients.
As the name suggests, SSI is intended to supplement other earnings or benefits up to a minimum amount the SSA determines a person needs to live on.
For example, a 70-year-old retiree who receives $500 a month from SSDI, if approved would receive $221 in SSI to make their total monthly benefit the Federal Benefit Rate of $771.
Mr. Abraham is an experienced attorney and founding member of the Law Firm of Abraham & Bauer. The Towson, MD office of the firm concentrates its practice in Estate Planning, Elder Law, Probate, Medical Assistance (Medicaid), Guardianship, Asset Preservation and Fiduciary Representation.
He is an active member in a number of professional organizations that focus on law, the senior community, and estate planning. He works with clients in Central Maryland, especially in Towson, Hunt Valley, Lutherville/Timonium, Parkville, White Marsh, Bel Air & Northern Baltimore City.
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