How does Social Security calculate the amount of my benefits?

In South Dakota, Social Security Disability (SSD) benefits are calculated based on the average of your earnings over your lifetime. The Social Security Administration (SSA) looks at your earnings from the last five years prior to becoming disabled, and averages them to determine your average benefit amount. This amount is also adjusted for inflation and any cost of living increases that may have occurred since the date of your disability. The SSA also considers how many credits you have earned in a three-year period prior to becoming disabled in order to determine what amount of benefits you are eligible for. Generally, any individual who has earned at least twenty quarters of past earnings may be eligible for SSD benefits. In addition, the SSA takes into account any dependents in your family when calculating your benefits. If you have a spouse or children under the age of eighteen, the SSA may increase your benefits to cover any dependents you have. This is known as the “family maximum”. The amount you receive in SSD benefits is also affected by other government benefits such as SSI payments, as well as any state or local benefits that you may be receiving. Finally, any other financial resources you have, such as savings or investments, will also be considered when calculating your SSD benefits. Overall, the amount of your SSD benefits is determined based on past earnings, credits earned, present family size, and any other financial resources you may have. The SSA uses all of this information to calculate the amount of SSD benefits you are eligible to receive.

How does Social Security calculate the amount of my benefits?

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