When most people talk about Social Security, they’re referring to the program’s retirement benefits, which provide monthly checks as early as age 62 for some beneficiaries. But the Social Security program also has a host of other benefits.
In fact, the so-called “Social Security taxes” withheld from your paycheck every payday are technically known as “Old Age, Survivors and Disability Insurance” taxes, or OASDI. As the full name explains, in addition to “old age” or retirement benefits, you’re also paying taxes to support payouts for survivors and disability insurance.
Here’s how to qualify for disability benefits and what you might expect in terms of a payout if you’re eligible.
Learn More: Understanding the Basics of Social Security
Also See: The Biggest Problems Facing Social Security
What It Is
Social Security disability insurance (SSDI) is similar in some ways to private or corporate-sponsored disability plans. In other words, if you’re disabled to the point that you’re unable to work, the program will pay you a monthly income benefit. Just like Social Security retirement benefits, funds for Social Security disability insurance come from current workers, whose taxes fund the SSDI Trust Fund.
Eligibility
Although the general structure of SSDI may be similar to other disability insurance plans, eligibility is much more difficult. Only the most severely disabled qualify for SSDI. However, the payouts are not partial or temporary.
As defined under the Social Security Act, a disabled person eligible for SSDI must have a severe medical condition that either prevents work for at least one year or is expected to result in death. A qualifying person must be unable to do any type of work, not just work in a former chosen field.
Generally, you can qualify for SSDI only if you meet the same work requirements as for retirement benefits. This means that you need to have completed at least 40 quarters of coverage, with 20 coming in the past 10 years before you became disabled. Allowances are granted, however, for younger workers.
See More: All the States That Don’t Tax Social Security
How Much Does It Pay?
Although it’s fairly tough to qualify for SSDI, the benefits are by no means a windfall. As of November 2021, the average monthly benefit awarded was just $1,282.39, although this amount is expected to increase to $1,358 for 2022.
Just like with Social Security retirement benefits, however, your SSDI payout will be tied to your individual income. To calculate your benefit, the Social Security Administration examines your earnings record from age 22 and until the age you became disabled. Between one and five of your worst-paying years are dropped for purposes of the calculation, depending on how long you’ve been working.