The Social Security Administration manages two programs that pay benefits to individuals unable to work because of disability and retirement benefits to eligible older workers. A common question concerns how the three programs work together when a person qualifies for more than one at the same time. Specifically, what are the rules about getting disability and retirement together?
The Northern California disability professionals at Sackett and Associates have helped people with disabilities nationwide get the Social Security benefits they need. This article explains the disability programs, Social Security Disability Insurance (SSDI) and Supplement Security Income (SSI), and whether you can collect them while also receiving retirement benefits.
Disability And Retirement Programs Through The Social Security Administration
Social Security pays retirement benefits to approximately 52.6 million retired workers. A person whose work record is long enough at jobs or self-employment, with payment of Social Security taxes on the income, is eligible for retirement benefits. The SSDI program pays benefits to eligible workers who become disabled and are unable to continue working before retirement age.
SSI is a needs-based program rather than one based on eligibility through a work history, as is the SSDI program. It pays benefits to adults and children who are blind or disabled, and to people 65 and older who do not need to be blind or disabled. All recipients of SSI benefits must meet strict limitations on their income and financial resources.
Can you receive SSDI or SSI with Social Security retirement benefits?
Generally, you cannot receive SSDI and Social Security benefits at the same time. The SSDI program gives disabled workers the opportunity to receive the benefits they’d get at retirement age.
Receiving SSDI with Social Security retirement simultaneously would be a form of double dipping. To prevent this from happening, the SSDI monthly benefit payments you receive automatically convert to retirement benefits when you reach full retirement age, which some people erroneously assume to be age 65.
The Social Security Administration determines full retirement age based on a person’s birth year. If you were born in 1960 or later, your full retirement age is 67.
When you reach full retirement age, you will receive the same amount each month that you got from SSDI. You may see an increase in the retirement benefits if you were receiving workers’ compensation or other public disability benefit payments with your SSDI.
You may not receive public disability or workers’ compensation with SSDI if the combined payments exceed 80% of the average earnings you had before the onset of your disability. The amount exceeding 80% reduces the payment you get each month through SSDI. Once you reach retirement age and the SSDI converts to retirement benefits, the offset ends, so you get your full monthly benefit.
The SSI program is not tied to Social Security retirement, so you can receive SSI disability plus Social Security retirement benefits at the same time. However, retirement benefits from the Social Security Administration represent unearned income under the SSI program.
The amount you receive from the Social Security Administration in retirement benefits is unearned and reduces how much you can receive from SSI. The retirement payment, less a $20 unearned income monthly exclusion, is the amount the SSI benefit payment is reduced.
For example, the maximum monthly federal SSI benefit payment currently is $967 for individuals and $1,450 for couples. If you qualify for the maximum SSI payment and $600 a month in Social Security retirement benefits, you may deduct an unearned income exclusion of $20, which reduces the unearned income to $580. You continue to receive $600 a month in retirement benefits, but the SSI benefit is reduced by $580 to $387.
Dual Entitlement
If you qualify for Social Security benefits through your work record and the record of your spouse, it is called dual entitlement. It may involve eligibility for retirement or SSDI benefits.
Dual entitlement cannot violate federal law, so it does not mean collecting dual Social Security benefits at the same time.
Instead, the Social Security Administration calculates how much you could receive from each account and pays you the higher amount rather than both. If your spouse’s account pays a higher amount, you receive your benefit payment each month, with the balance coming from your spouse’s account.
Learn More From Compassionate Professionals At Sackett Law
Instead of subjecting yourself to the frustration of complicated and confusing rules and procedures, trust your Social Security disability benefits claim to the professionals at Sackett and Associates. Learn why people in Northern California and throughout the nation have looked to Sackett Law for advice and representation with disability applications and appeals for the last 45 years. Let us show how we make a difference by contacting us today for a complimentary initial consultation.
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