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Updated October 7, 2021
Social Security Disability Insurance (SSDI)
Overview
Spouses of disabled workers qualify for SSDI benefits if
Social Security Disability Insurance (SSDI) is part of the
they are (1) aged 62 or older or (2) any age and care for an
Old-Age, Survivors, and Disability Insurance (OASDI)
eligible child who is under age 16 or disabled. Children of
program, commonly known as Social Security. OASDI is a
disabled workers qualify for SSDI benefits if they are
federal social insurance program that provides monthly
unmarried and (1) under age 18, (2) aged 18-19 and a full-
cash benefits to insured workers and their eligible family
time student in grade 12 or below, or (3) aged 18 or older
members in the event of the worker’s retirement, disability,
and became disabled before age 22.
or death. Workers obtain insurance protection by working
for a sufficient number of years in jobs covered by Social
Cash and Medical Benefits
Security. The program’s SSDI component provides benefits
In August 2021, Social Security provided $10.8 billion in
to nonelderly insured workers who experience severe,
benefits to 9.4 million SSDI beneficiaries, including 8.0
work-limiting disabilities and to their eligible spouses and
million disabled workers, 100,000 spouses of disabled
children. As with Old-Age and Survivors Insurance
workers, and 1.3 million children of disabled workers
(OASI)—Social Security’s retirement and survivors
(Table 1). The average monthly SSDI benefit was $1,281
component—benefits are based on a worker’s past earnings
for disabled workers, $359 for spouses of disabled workers,
in covered employment or self-employment. The Social
and $401 for children of disabled workers.
Security Administration (SSA) administers OASDI.
Table 1. SSDI Beneficiaries, August 2021
Eligibility Requirements
To qualify for SSDI, workers must (1) be below Social
Total
Security’s full retirement age (FRA), (2) be insured in the
Average
Monthly
event of disability, and (3) meet the statutory definition of
Number
Monthly
Benefits
disability. FRA is the age at which unreduced Social
Beneficiary
(thousands)
Benefit
(millions)
Security retired-worker benefits are first payable, which is
Total
9,386
$1,152
$10,816
65-67, depending on year of birth. Workers who have
attained their FRA are ineligible for SSDI.
Disabled
8,021
$1,281
$10,274
Workers
To be insured in the event of disability, workers must have
Spouses
100
$359
$36
worked in jobs covered by Social Security for about a
quarter of their adult lives and for at least five of the 10
Children
1,265
$401
$507
years prior to the onset of disability. However, younger
Source: Social Security Administration (SSA), “Monthly Statistical
workers may qualify with less work experience based on
Snapshot, August 2021,” September 2021, Table 2.
their age. In 2020, SSDI provided disability insurance
Notes: Components may not sum to totals due to rounding.
protection to 156 million workers. That year, about 89% of
covered workers aged 21-64 had sufficient work experience
Initial benefits for workers are based on their career-
to qualify for SSDI in the event of disability.
average earnings in covered employment or self-
employment, indexed to reflect changes in national wage
To meet the statutory definition of disability, a worker must
levels. The benefit formula is progressive, replacing a
be unable to engage in any substantial gainful activity
greater share of career-average earnings for low-wage
(SGA) due to any medically determinable physical or
workers than for high-wage workers. The benefit for a
mental impairment that is expected to last for at least one
spouse or child of a disabled worker is up to 50% of the
year or to result in death. SSA uses an earnings threshold to
worker’s basic benefit amount. Following entitlement,
determine whether an individual’s work activity constitutes
SSDI benefits are generally adjusted each year to account
SGA, which the agency adjusts annually for average wage
for inflation through cost-of-living adjustments.
growth. In 2021, the SGA earnings limit for most workers
is $1,310 per month. In general, workers must have severe
Benefits for dependents are subject to family maximum
impairments that prevent them from doing any kind of
provisions, which limit the total amount of benefits that can
substantial work that exists in significant numbers in the
be paid on a worker’s earnings record. SSDI benefits may
national economy, taking into consideration their age,
be offset if disabled workers also receive WC or certain
education, and work experience. The work need not exist in
other public disability benefits and the combined amount of
the immediate area in which the worker lives, nor must a
their SSDI and other disability benefits exceeds 80% of
specific job vacancy exist for the individual. Unlike
their average current earnings before they became disabled.
workers’ compensation (WC) or the Department of
Veterans Affairs programs, SSDI does not pay benefits for
SSDI benefits begin five full consecutive months after a
partial or short-term disabilities.
worker’s disability onset date. This requirement is known
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Social Security Disability Insurance (SSDI)
as the five-month waiting period and does not apply to
workers’ earnings, which are credited to the Disability
disabled workers with amyotrophic lateral sclerosis (ALS)
Insurance (DI) and OASI Trust Funds. The total Social
who are approved for benefits on or after July 23, 2020. In
Security payroll tax rate is 12.4% of a worker’s earnings:
addition to cash benefits, disabled workers and certain
1.8% for the DI Trust Fund and 10.6% for the OASI Trust
disabled dependents qualify for health care coverage under
Fund. The payroll tax is levied on earnings up to an annual
Medicare after 24 months of entitlement to SSDI (generally
limit, which for 2021 is $142,800. The trust funds also
29 months after the onset of disability). This requirement is
receive income from the taxation of a portion of some
known as the 24-month waiting period and does not apply
Social Security benefits and from interest earned on U.S.
to individuals with ALS or end-stage renal disease.
securities credited to the trust funds for years in which total
income exceeded total cost.
Termination of Benefits
In general, SSDI benefits continue until a disabled worker
In 2020, total income to the Social Security trust funds was
(1) dies, (2) attains FRA, (3) medically improves, or (4)
$1,118 billion, with $150 billion (or 13%) credited to the DI
returns to work (i.e., earns above the monthly SGA limit).
Trust Fund. That same year, total cost for the trust funds
Most disabled workers who leave the SSDI rolls do so
was $1,107 billion, with $146 billion (or 13%) debited from
because they attain FRA. Disabled workers who attain FRA
the DI Trust Fund. The trust funds held a combined $2,908
are transitioned automatically from SSDI to OASI;
billion in asset reserves at the end of 2020, with $97 billion
however, this change generally does not affect the amount
(or 3%) credited to the DI Trust Fund.
of Social Security benefits paid to them or their dependents.
The Social Security trustees project that under current law
Working While on SSDI
and under their 2021 intermediate assumptions, the trust
Disabled workers are afforded a trial work period (TWP),
funds on a hypothetical combined basis will be able to pay
which allows them to test their ability to work for up to nine
benefits in full and on time until 2034. Individually, the DI
months (not necessarily consecutive) within a 60-month
Trust Fund is projected to be depleted in 2057, and the
rolling period without having their benefits suspended or
OASI Trust Fund is projected to be depleted in 2033. Upon
terminated. During the TWP, disabled workers may earn
depletion of the DI Trust Fund in 2057, continuing revenues
any amount and receive their full benefits, even if their
would be sufficient to pay about 91% of scheduled SSDI
earnings exceed the SGA limit. In 2021, any month in
benefits, increasing to 92% by 2095.
which a disabled worker’s earnings exceed $940 is
considered a month of services (i.e., work) and counted
Characteristics of Disabled Workers
toward the nine-month TWP.
SSDI provides benefits primarily to older workers; 77% of
disabled workers were aged 50 to FRA in December 2019.
Following the exhaustion of the TWP, disabled workers
The most common types of impairments among disabled
enter an extended period of eligibility (EPE). During the
workers aged 50 to FRA were musculoskeletal disorders
first 36 months of the EPE—known as the reentitlement
(i.e., conditions related to muscles, ligaments, tendons, and
period—disabled workers receive benefits only for months
bones). The most common types of impairments among
in which their earnings are at or below the SGA limit. If
disabled workers under age 50 were mental disorders.
their earnings exceed the SGA limit during this period, their
benefits are suspended. Disabled workers who earn above
Figure 1. Disabled Workers, by Diagnostic Group and
the SGA limit in or after the 37th month of the EPE have
Age, December 2019
their benefits terminated. Workers who are terminated due
to earnings above the SGA limit but who continue to have a
qualifying impairment retain Medicare coverage for at least
57 months following the end of the reentitlement period. In
2019, about 0.7% of disabled workers were terminated from
SSDI due to earnings above the SGA limit.
Program Integrity
SSA periodically reevaluates a worker’s medical status by
conducting a continuing disability review (CDR). Disabled
workers with medical conditions that may improve are
scheduled for CDRs at least once every three years, and
those with the most severe conditions are scheduled for
CDRs at least once every five to seven years. About 0.4%
of disabled workers were terminated from SSDI in 2019
due to medical improvement. SSA also performs work
CDRs to determine if a disabled worker is earning above
the SGA limit and if entitlement to benefits should
continue.
Source: SSA, Annual Statistical Report on the Social Security Disability
Financing
Insurance Program, 2019, Table 24.
Benefits and administrative costs for Social Security are
William R. Morton, Analyst in Income Security
financed primarily by payroll taxes levied on covered
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Social Security Disability Insurance (SSDI)
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