1. How SSDI Payments Are Calculated

• SSDI benefits are based on your Primary Insurance Amount (PIA)—derived from your average indexed monthly earnings (AIME) across your 35 highest-earning years
• The Social Security Administration (SSA) sets an annual cap on SSDI payments. Even if your calculated PIA is higher, it cannot exceed that limit

2. Maximum SSDI Benefit for 2025

• For 2025, the maximum SSDI benefit is $4,018 per month
• Only individuals who worked for at least 35 years at or near the maximum taxable earnings each year qualify for this full amount
• Most SSDI recipients receive significantly less, with the average monthly benefit around $1,500

3. Who Qualifies for the Maximum Benefit?

You may qualify only if you:

• Consistently earned at or above Michigan’s Social Security taxable earnings cap (which rises yearly) for 35 years
• Paid maximum Social Security payroll taxes during those years
• Have no offsetting benefits (e.g., certain pensions) that reduce SSDI

4. How Dependents Can Increase Total Household Benefits

• SSDI provides auxiliary benefits to eligible family members, such as spouses and children
• Total household SSDI can increase by up to 50% of the worker’s PIA, though this too is capped based on SSA rules

5. Annual Cost-of-Living Adjustments (COLA)

• SSDI benefits are adjusted each year to keep pace with inflation
• For 2025, the COLA was approximately 2.5%, which increased both average and maximum payments
• Future COLA raises mean the 2026 maximum could be higher than today's $4,018

6. How SSDI in Michigan Compares Nationally

• Michigan follows federal SSDI calculations, but cost of living and state support programs can affect how far your benefit goes
• While the cap is the same nationwide, actual benefit amounts differ based on earnings history