Disability benefits paid through the Social Security Disability Insurance program convert to retirement benefits when you reach full retirement age. The primary purpose of the SSDI program has always been to provide disabled workers with early access to their retirement benefits by letting them apply for Social Security Disability.
Although you generally cannot apply for disability through Social Security after retirement, there are exceptions the disability professionals at Sackett and Associates want you to know about. This blog explains disability benefits and the circumstances that may allow you to submit a disability application post-retirement.
Disability Benefit Programs
Before getting into the rules governing retirement and disability eligibility through the SSDI program, it’s worth mentioning another disability program administered by Social Security. The Supplemental Security Income or SSI program also pays disability benefits, but unlike SSDI, eligibility for SSI does not require a work history.
SSI is a needs-based program designed to help people who are blind or disabled pay for food, shelter, and other essentials. You don’t need a work history, but the SSI program imposes income and resource limits for eligibility. Resources or assets you own may not exceed $2,000 in total value for individuals and $3,000 for married couples, and you cannot have more than little or no income.
The SSI program’s funding comes from the U.S. Treasury’s general fund, not the Social Security trust fund. SSI benefits will not stop or convert at retirement age. However, your SSI payments may be reduced if you also qualify for SSDI or Social Security retirement benefits. The SSDI or retirement payment counts as income to reduce the monthly SSI benefit.
Retirement And Disability Eligibility
It is possible to apply for disability benefits from Social Security after retirement. You may apply for SSI benefits at any age, provided you meet the income and resource limitations.
SSDI benefits automatically convert to retirement payments when you reach full retirement age. The full retirement age for Social Security retirement benefits is not necessarily age 65, as many believe.
The age when a person with a long enough work history becomes eligible for Social Security retirement benefits is based on their birth year. It was age 65 for someone born in 1937, but people later had to wait longer.
Currently, the law sets the maximum age for full retirement at 67 for anyone born in 1960 or later. Here are a few examples of the full retirement ages for those born earlier than 1960:
- Born in 1957: Age 66 years and six months.
- Born in 1958: Age 66 years and eight months.
- Born in 1959: Age 66 years and 10 months.
If you become disabled and unable to work before your full retirement age, the monthly benefit payment you receive from SSDI is calculated as it would be had you reached full retirement age.
Not everyone waits until full retirement age to stop working and collect their Social Security retirement benefits. Instead, they opt to retire early.
Early Retirement And Disability Benefits
Early retirement at age 62 comes at a cost. The monthly benefits you receive are less than you would have gotten by waiting, and the reduction continues even after reaching full retirement age. If you have a medical condition that prevents you from working, submitting a disability application post-retirement may offer a way to avoid the reduction in benefits for early retirement.
The wait time can be several months for a decision on an initial application for SSDI benefits, so people take early retirement at age 62 to have an income while waiting for a decision on their disability claim. Submitting a disability application post-retirement comes with the risk that Social Security may deny it or determine your disability onset date as occurring after you retired. In either event, you lose benefits due to the early retirement reduction.
If Socia Security approves your post-retirement application for SSDI and agrees that your disability began before early retirement, you receive the full SSDI benefit, including back pay. When you reach full retirement age, the SSDI benefits convert to retirement without the early retirement reduction. Before applying for early retirement or Social Security Disability benefits, speak to a member of the Sackett Law disability team for advice and guidance.
Learn More About Retirement And Disability Benefits
Complicated Social Security retirement and disability eligibility rules and procedures increase the chance of making a mistake that could prove to be costly. Instead of taking on the Social Security system alone, let the skilled professionals at Sackett and Associates help. They’ve been there for people with disabilities in Northern California and throughout the country for over four decades.
When you need assistance to apply for Social Security Disability or want an experienced disability lawyer to appeal a denial of benefits or other adverse decision, contact Sackett Law for a free consultation and claim evaluation. We’ll answer your questions and address your concerns about retirement and disability eligibility or other matters related to benefits you’re entitled to from the Social Security Administration.
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