Due to your Social Security disability and retirement benefits being determined by an average of your historical earnings, having little or no income for a period of time can lower your monthly Social Security benefits when you need to use them. To decrease the impact of these little or no income periods on your overall benefits, the Social Security Administration (SSA) created a “disability freeze.” A disability freeze is a period where the SSA won’t consider your income when calculating your future benefits.
Suppose you worked for 10 years making 100 dollars a year. Your total income would add up to 1,000 dollars. If your social security retirement benefits paid 75 percent of the average amount of your total earnings, your yearly retirement benefits would be 75 dollars. Now suppose that you earned no money for two years because you were injured. The total you earned during your career would only com to 800 dollars. If your yearly retirement benefits were 75 percent of the average of your total earnings, they would only come out to 60 dollars which is 75 percent of 800 dollars. But, if you took a disability freeze for the two years you didn’t work, the SSA would determine your retirement based on the average of only eight working years. The total amount you earned was only 800 dollars, but the average you made each year was 100 dollars. So, your yearly retirement benefit would be 75 dollars.
Now, of course you make more than 100 dollars a year, and will work for much longer than 10 years, but just for the sake of explanation we used those amounts.
For further information about how to apply for a disability freeze and whether you are eligible, consult the legal professionals at the Kenton Koszdin Law Office in Van Nuys. We can be reached at (800) 438-7734. Your initial consultation is always free.