How does Social Security calculate the amount of my benefits?
Social Security Disability (SSD) benefits are calculated based on your earnings over the years prior to the disability. Under the system, individuals who pay into payroll taxes while they are employed accumulate credits which they may use to qualify for SSD when they become disabled. When the Social Security Administration (SSA) determines eligibility, they will first verify that you have enough work credits to qualify for SSD. If you have sufficient work credits, then your benefit amount will be based on the average income you earned throughout your working years. This is known as the Average Indexed Monthly Earnings (AIME) formula. The AIME formula takes into account a person’s highest 35 years of earnings and takes an inflation-adjusted look at the earnings from that time period. The SSA then uses a formula to multiply your AIME by a set percentage depending on your age and the number of years you have worked. In California, the amount of SSD benefits you receive will depend on your past earnings and the number of credits you have accumulated. The more credits you have, the higher the amount of SSD benefits you can receive. Additionally, the SSA may look at other criteria, such as resources and living arrangements, to determine the amount of benefits you receive.
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