Becoming disabled doesn't automatically entitle you to collect benefits from the Social Security Administration. Some disabled persons are able to continue working in their careers and others go on to take early retirement, or begin investing in real estate or the stock market. Ultimately, Social Security disability funds are earmarked for disabled individuals who can't otherwise earn a basic living wage. If it has taken years for you to successfully be awarded Social Security benefits the good news is that you likely have a sizable back payment coming your way.

Social Security Retroactive Pay Calculations

People receiving SSDI are allocated monthly payments, which are paid out on the third day of every month. The amount that you get in SSDI payments is determined by calculating the total number of quarters worked before you were deemed totally disabled. Next, the amount of money that you earned while still working is calculated into the equation. From there, the Social Security Administration looks at when you initially filed for disability and the time that you received a favorably decision. That money will be awarded to you retroactively, and you can look forward to receiving a lump sum payment.

Lump Sum Social Security Payments

Any expenses that you owe to a social security disability attorney will have to be paid out of your retroactive lump sum payment. Many social security disability claimants are able to find attorneys that will not charge any upfront fees because they believe that their cases will likely succeed. However, you may need to pay a pretty large part of your total retroactive lump sum payment to your attorney upon earning disability benefits. You will be sent a letter that details your total award amount, which includes your Social Security disability back payment as well as your regular monthly benefit earnings.

Deciding How You Will Receive Social Security Disability Payments

According to the Department of Treasury, the Social Security Administration no longer routinely sends out paper checks to disability beneficiaries. You must have a U.S. based bank account setup in order to receive direct deposits for your disability payments. There is also a debit card that is supported by the Social Security Administration that enable those without a bank account to receive their payments. 

In very limited situations, paper checks may be send to disabled persons on Social Security, but you must either live in an area where there are no available banks, have a documented mental impairment or be born prior to May of 1921. A waiver must be sent and accepted by the Social Security Administration before you can be considered for receiving benefits other than direct deposit. Visit a site like http://www.socialsecurityesq.com for more help.