Factors That Determine Your Social Security Benefits

Type of Social Security Benefit

The amount you can receive depends on which type of Social Security benefit you're applying for:

• Social Security Disability Insurance (SSDI): For individuals with a disability who have worked and paid Social Security taxes for a required period of time.
• Supplemental Security Income (SSI): A needs-based program for individuals who are disabled, blind, or elderly, with limited income and resources.
• Social Security Retirement Benefits: For individuals who are retired and have worked and paid into the Social Security system for a required number of years.

How Social Security Disability Benefits Are Calculated

Your Average Indexed Monthly Earnings (AIME)

To calculate SSDI benefits, the Social Security Administration (SSA) looks at your lifetime earnings. The SSA uses your AIME, which is the average of your highest-earning 35 years of work, adjusted for inflation. This helps determine how much you’ve paid into the Social Security system over the years.

• Higher earnings lead to higher benefits: The more you’ve earned and paid into Social Security, the higher your SSDI payments will likely be.

Your Primary Insurance Amount (PIA)

Once your AIME is calculated, the SSA uses a formula to determine your Primary Insurance Amount (PIA). This is the base amount you’re eligible to receive monthly if you start benefits at your full retirement age or as a disabled individual.

• Full Retirement Age: If you wait until your full retirement age (typically 66 or 67, depending on your birth year) to begin receiving retirement benefits, you’ll receive the full amount of your PIA.
• Early Retirement: If you begin receiving retirement benefits before your full retirement age (as early as age 62), your monthly payments will be reduced.
• Disability Benefits: SSDI recipients typically receive a percentage of their PIA, based on their work history and earnings.

Average SSDI Monthly Benefit

The average monthly benefit for SSDI recipients in 2025 is about $1,358, but this amount can vary significantly based on your work history and lifetime earnings. Some recipients receive more or less, depending on the factors mentioned above.

How Supplemental Security Income (SSI) Benefits Are Calculated

Income and Asset Limits

Unlike SSDI, SSI is a need-based program. The amount you can receive from SSI depends on your income and assets. In 2025, the maximum federal SSI benefit for an individual is $914 per month and $1,371 for a couple. However, your monthly benefit may be reduced if you have other sources of income or assets.

• Income Limit: If your monthly income exceeds a certain threshold, you may not qualify for SSI or your benefits may be reduced.
• Asset Limit: Your resources must be below $2,000 for an individual and $3,000 for a couple. Resources include savings, bank accounts, and property that is not your primary residence.
  

How Social Security Retirement Benefits Are Calculated

Your Work History and Earnings Record

For retirement benefits, Social Security uses your work history and earnings record to determine your monthly benefit. The SSA looks at your highest 35 years of earnings and applies an indexing factor to account for inflation over the years.

• Early Retirement: If you begin receiving benefits before your full retirement age, your payments will be reduced based on how early you start.
• Delayed Retirement: If you delay receiving benefits past your full retirement age, you can earn delayed retirement credits, which increase your monthly payment.

Average Retirement Benefit

In 2025, the average monthly Social Security retirement benefit is approximately $1,700, but the amount varies depending on how much you’ve earned over your career.

How to Estimate Your Social Security Benefits

Use the SSA’s Online Tools

The Social Security Administration offers online tools to help you estimate how much you could receive in Social Security benefits:

• Social Security Retirement Estimator: This tool estimates your retirement benefits based on your current earnings record.
• Benefit Calculators for Disability and SSI: These tools provide estimates for SSDI and SSI benefits, depending on your personal situation.

Review Your Social Security Statement
The SSA mails your Social Security statement every year, but you can also access it online at www.ssa.gov/myaccount. Your statement provides an estimate of your retirement, disability, and survivors benefits, based on your work history and earnings record.