The Social Security Administration distributes a monthly benefit amount to a Social Security Disability beneficiary. Social Security Disability recipients receive a varying amount based on a range of factors, and the amount received by each claimant is decided by these factors.
When the Social Security Administration calculates a Social Security Disability beneficiary’s Monthly Benefit amount, both the amount of taxes paid into the Social Security program and the location in which the beneficiary resides are considered. For instance, an individual who has worked for 10 years at a salary of $50,000 a year will receive a bigger monthly benefit than an individual who has worked for six years at a salary of $25,000. However, a wage earner’s prior income is not the only factor. The cost of living in the beneficiary’s locality also has an effect on the amount of their monthly payment.
As an example, suppose two individuals have the exact same earnings history. One may suppose that their Social Security Administration Monthly Benefit Amount would be the same. However, this is not the case if those individuals dwell in places with varying cost of living indices. For example, an individual who resides in the Fort Meyers, Florida region would receive a lower Monthly Benefit Amount than a someone who lives in Chicago, Illinois, even if their earnings records were identical, due to the large cost of living difference between the two areas.