The answer to the question posed by the title of this blog post requires more than a simple “yes” or “no.” The Social Security Administration (SSA) oversees the two programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), that pay disability benefits when you cannot work because of a disabling physical or mental health condition.
The SSA also pays retirement benefits to people who worked long enough at jobs where they paid into the retirement system through the payment of Social Security taxes on the money they earned. A person usually cannot collect disability after retirement, but this blog explains the circumstances when a person may switch from retirement to disability benefits. It also shows how the amount you receive in retirement benefits each month may allow you also to receive SSI benefits.
How Do Retirement And Disability Benefits Work?
The Federal Insurance Contributions Act (FICA) requires the payment of Social Security taxes by workers and their employers to fund SSDI and Social Security retirement benefits. If you become disabled and unable to work before reaching full retirement age, you receive the equivalent of your retirement benefits through the monthly SSDI payments.
Even if you could switch to SSDI after becoming disabled on Social Security retirement, your monthly payments would be the same. This is why when you reach full retirement age, the SSDI benefits automatically convert to retirement benefits. It would be different if you qualify for disability benefits through SSI.
Social Security taxes do not fund the SSI program as they do SSDI. Eligibility for SSI is based on financial need rather than work history. You could become one of the 2.5 million people receiving SSI and retirement benefits, provided you have little or no income and few resources.
Resources cannot be worth more than $2,000 for individuals and $3,000 for couples. Your monthly income cannot exceed the SSI federal benefit rate of $967 in 2025, but your income may be subject to exclusions.
Social Security retirement benefits count as income to determine eligibility for SSI, so the amount you receive from Social Security less $20 reduces your monthly SSI benefits. The maximum monthly SSDI or retirement benefit is $4,018 in 2025, and the average SSDI or retirement benefit is $1,580, yet many people receive less based on their lifetime earnings.
Here is an example of how Social Security affects the monthly SSI benefit. Suppose your average lifetime earnings entitle you to a $550 monthly retirement payment. Only $530 of it counts against your SSI. Subtracting the $530 from the maximum federal SSI monthly benefit of $967 reduces the SSI benefits to $437, leaving you with a combined benefit from both programs of $987.
Early Retirement And SSDI Benefits
When you reach full retirement age, which is now age 67 for anyone born in 1960 or later, your SSDI benefits automatically convert to retirement benefits. If you become disabled after full retirement age, you cannot choose SSDI vs. retirement benefits. The choice is made for you with the automatic conversion of SSDI to retirement.
Someone who worked long enough and contributed to the Social Security system through the payroll taxes they and their employers paid can elect early retirement at age 62 instead of waiting until full retirement age. Electing early retirement results in a permanent reduction of your monthly benefit payments. The reduction can be as much as 30% of what you would have received by waiting until full retirement.
Applying for SSDI after early retirement may not avoid the early retirement benefit reduction. If approved, your SSDI benefits equal the full retirement benefit from the onset date of the disability until Social Security benefit changes from SSDI at full retirement age.
However, an SSA determination that your disability onset date is before you applied for early retirement may avoid a reduction in benefits after full retirement. You can avoid the risk of reduced retirement benefits by applying for SSDI before taking early retirement. This option may work best for someone at or close to early retirement age and forced to stop working because of a severe medical condition.
Another benefit of SSDI over early retirement is the availability of medical insurance through Medicare. If you take early retirement, you are not eligible for Medicare coverage until age 65. SSDI recipients become eligible for Medicare two years after approval of their disability claim.
Learn More About Your Benefits From Sackett Law
Sackett and Associates has been helping people with disabilities in Northern California and nationwide for more than 45 years. From filing applications for benefits to challenging denials or termination of benefits through the appeal process, the disability professionals at Sackett Law have the knowledge and experience to fight for the benefits you need. Contact us today for a free consultation.
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