Can Social Security Disability Change At Age 62
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Its not easy to get approved for Social Security Disability Insurance benefits. In fact, according to the Social Security Administration , between 63% to 74% of initial applications for SSDI benefits are denied. Because it is so hard to get approved in the first place, many people who receive these benefits worry about eventually losing them.
This is especially true for people who are nearing retirement age. Will your SSDI benefits stop once you reach retirement age? Will the amount you receive every month change? What changes should you expect? If you are concerned about your benefits, a Tampa Social Security disability attorney can help. But in general, here is the information you need to know:
When Does Ssa Decide You Are No Longer Disabled
Two things can cause us to decide that you are no longer disabled and to stop your benefits: 1 if you work at a level we consider substantial. In 2021, average earnings of $1,310 or more per month ($2,190 or more 2 if we decide that your medical condition has improved to the point that you are no longer disabled. More
How Do You Qualify For Social Security Disability Benefits
Disability benefits are available to qualified recipients under two programs, Supplemental Security Income and Social Security Disability Income . SSI is a means-tested program for people with disabilities who have very limited means, but SSDI is an insurance program that is available to qualified workers with disabilities regardless of their resources. As of January 2018, some 13.8 million disabled workers and their dependents were receiving SSDI benefits from Social Security.
SSDI pays cash benefits to people who are unable to work for a year or more because of a disability. Benefits continue until you are able to work again on a regular basis, or until you reach retirement age. At that point, the disability benefits automatically convert to retirement benefits, but the amount remains the same. After receiving SSDI benefits for two years, you also become eligible for health insurance coverage under Medicare. The disability program also includes a number of work incentives to ease your transition back to work.
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Who is eligible?
As with retirement benefits, you must have accumulated a certain number of work credits before you can qualify for SSDI disability benefits. However, fewer credits are required to qualify for the disability program than for retirement. You can earn up to four credits per year of employment. How many credits you need to qualify for disability depends on the age you become disabled.
Who is “disabled”?
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An Exception To The Rule
While most people will see little or no difference in the amount of monthly payment they receive after their disability benefits convert to retirement benefits, there is one important exception. If you are currently receiving worker’s compensation or public disability benefits from a federal job, you may not have paid Social Security taxes for these benefits. As a result, your SSDI payment may be reduced to account for these additional funds.
When your SSDI benefits convert to regular Social Security retirement benefits, your payments will no longer be reduced. In these instances, you may see a small to significant increase in the amount of your monthly benefits when you officially transition from disability to retirement benefits from the SSA.
Why Did 62 Year Old Man Apply For Disability
In another case, a 62-year-old man applied for disability because of chronic asthmatic bronchitis and heart disease. He had a 6 th grade education and hadnt worked in the last 15 years. The SSA found that, despite his bronchitis, he still had the RFC to do medium work. The grids directed a finding of disabled.
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When Does Social Security Disability Convert To Retirement
A portion of the payroll taxes you pay on income earned through employment or self-employment goes toward funding the retirement and disability programs administered by the Social Security Administration. If you work for a long enough duration, you become insured and eligible to collect benefits when you reach retirement age or sooner if you are unable to work because of a disability.
If you are eligible to collect benefits through the Social Security Disability program, the monthly benefits you receive eventually convert to retirement benefits. This article gives you valuable information that may prevent you from making a mistake that could end up reducing your retirement benefits. After reading it, you should contact a disability advocate at London Disability with any questions you may have about applying for SSD and its relationship to Social Security retirement benefits.
Calculating Your Benefit Amount
The formula for calculating your Social Security benefits and your Disability benefits is exactly the same right up until the very end. Well get into how it diverges in the next section, but for now, well focus on the shared process.
The first step is calculating your average indexed monthly earnings . The Social Security Administration will take your 35 highest-earning years into consideration. For each of those years, it will index your income for inflation and include it up to the taxable maximum . For tax year 2020, this point is $137,700.
Next, the SSA will add up these totals and divide to get your AIME. If you have more than 35 earning years, your lowest years will be excluded. If you have less, the SSA will include a $0 in the calculation for every year youre short.
The last step is to calculate your primary insurance amount from your AIME. To calculate your PIA, the SSA will take a percentage of three different chunks of your AIME. The exact amount of these portions will differ slightly depending on the year you become disabled or turn 62. If you do either in 2021 the SSA will take 90% of your first $996, 32% of the amount between that and $6,002 and 15% of anything that remains. The total is your PIA.
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Why It’s Easier To Get Disability After Age 60
For older workers, in particular claimants 60 and older, Social Security must consult a series of tables called the “grids” to decide if a person is disabled. The grids are a set of rules that take into consideration a disability claimant’s age, residual functional capacity , education, and work history to determine whether the claimant should be approved or denied.
The reason claimants over the age of 60 are much more likely to be approved under the grids is because Social Security takes into consideration the fact that it may be harder for older workers to learn new skills and to transition into new workplaces. That said, if you worked at a skilled job before you became disabled and you could put your skills to use at a less demanding type of job, you won’t be approved for disability just because you are older.
Here is what the grids take into account.
What Happens To My Ssdi When I Reach Full Retirement Age
If you are collecting Social Security Disability Income benefits, you may wonder what happens when you reach full retirement age . The good news is, your benefits will automatically convert and for most people, your benefits remain the same.
SSDI benefits are dependent on how long you worked and what you paid into the Social Security system. When you applied for SSDI, your Primary Insurance Amount was calculated based on your Average Indexed Monthly Earnings , so you are already collecting what you would normally receive for Social Security Retirement benefits and the switch happens automatically. If your spouse is receiving benefits based on your record, his/her benefits will also automatically convert. So when does it switch? Well, that will depend on when you were born: the table below can tell you when your Social Security Disability Income will change to Social Security Retirement.
1938 65 years and 2 months
1939 65 years and 4 months
1940 65 years and 6 months
1941 65 years and 8 months
1942 65 years and 10 months
1943 through 1954 66 years
1955 66 years and 2 months
1956 66 years and 4 months
1957 66 years and 6 months
1958 66 years and 8 months
1959 66 years and 10 months
1960 and later 67 years
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When Will Disability Benefits Convert To Social Security
- People who receive disability and are approaching retirement may have questions about the transition between disability and regular Social Security payments.
If you are currently receiving Social Security disability benefits, you may wonder what happens when you reach official retirement age and are eligible to receive regular Social Security. Understanding the process of transitioning from disability to Social Security can help you enjoy greater peace of mind regarding this important change in your benefits.
When Does Social Security Pay More Than Disability
The reverse of the above situation is if you are between your FRA and age 70. After you reach your FRA, your Social Security benefit amount increases by 0.8% for every month you hold off on electing. This continues until you reach 70, at which point your benefit reaches its maximum. In this situation, your monthly Social Security benefit would be larger than your monthly Disability benefit.
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What Happens To Your Social Security Benefits If You Retire At 62
If you take early retirement once you reach the age of 62, your retirement benefit amount will be permanently reduced. The amount your benefit is reduced depends on the number of months you have until full retirement age . This is called the reduction factor.
This works in your favor because nothing changes until you reach FRA. At that point, you will automatically be moved from SSDI to the full retirement program. If you become disabled at age 62, you are permitted to apply for both early retirement, which is about 75% of the benefit of full retirement, in addition to SSDI.
The Transition From Disability To Retirement Is A Scary One For Social Security Recipients
Most people think of Social Security as a retirement program, but disability benefits are also a huge part of Social Security. About 8.8 million Americans receive Social Security disability benefits, and another 1.8 million more dependents rely on the program to help make ends meet.
One of the most confusing things about Social Security disability is what happens after you reach retirement age. For many disabled Americans, shortened work histories mean that retirement benefits would ordinarily be unavailable or insufficient to meet their financial needs. But in figuring retirement benefits for the disabled, Social Security doesn’t follow the same formula that it uses for most retirees.
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An Exception To The Grids
If Social Security decides that your condition doesn’t prevent you from doing your previous work for at least a year, you will be denied. In this case Social Security doesn’t have to abide by the grid rules, since they are used to determine whether you should be able to adjust to a new type of work. If Social Security denies you benefits for this reason, speak to an experienced disability lawyer.
What Other Changes Can You Expect
If you are approved for SSDI benefits, the SSA will conduct regular reviews of your condition to determine if you are still disabled and entitled to benefits. This is called a continuing disability review, and it typically takes place once every three years. The SSA will conduct more frequent reviews of SSDI recipients with conditions that are expected to improve sooner. If your condition is not expected to improve, the SSA may only conduct these reviews every five to seven years.
The purpose of this review is to determine if your disability has improved to the point where you are no longer eligible for benefits. If the SSA determines you are no longer considered disabled after conducting a review, your benefits will stop.
Once your SSDI benefits are converted to retirement benefits, the SSA will no longer need to perform continuing disability reviews. This is because you no longer need to meet the SSAs definition of disabled in order to continue receiving benefits. Your eligibility for benefits will no longer depend on whether or not your disabling condition makes you incapable of returning to work. This is one less thing that recipients will have to worry about once they reach full retirement age and begin receiving retirement benefits.
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How Long Will Social Security Disability Benefits Last
Many people are under the mistaken assumption that Social Security Disability benefits last forever. This isn’t necessarily the case. While many people will receive Social Security Disability benefits until they reach the retirement age of 65, not everyone will. For those who do receive Social Security Disability benefits until age 65, Social Security benefits will not just stop altogether. They will simply change from Social Security Disability benefits to Social Security Retirement benefits. There are, however, some instances in which a Social Security Disability beneficiary will have their disability benefits stopped prior to reaching the age of 65.
Why Social Security Disability Benefits End
There are a number of reasons why Social Security Disability benefits would be revoked after being instated. The most common reasons for a stop in Social Security Disability benefits are improvement of one’s disabling condition, incarceration, or a return to work. How long you receive Social Security Disability benefits will be determined by whether or not these factors come into play and, if so, when. For example, someone could begin receiving Social Security Disability benefits in 2010 and those benefits could go under review in 2013. If the Social Security Administration decides that the person is no longer disabled, the benefits could stop.
How to Keep Your Social Security Disability Benefits in Effect
What Happens If You Dont Get Ssdi At Age 62
In fact, if you are never able to win SSDI you could be stuck collecting less than your full retirement rate for the rest of your life. Deciding whether or not to apply for SSDI benefits, early retirement benefits or both benefits at the same time is an important decision and should not be made without first considering all of your options.
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Can I Receive Ssi And Retirement Benefits
One of the requirements of continuing to receive SSI benefits is that you apply for any other cash benefits that are available, including retirement benefits . However, the good news is that you will be able to receive both retirement and SSI at the same time, so your overall monthly benefit amount will not decrease.
Two Social Security Disability Programs
The Social Security Administration has two disability programs that it administers. Each of them pays monthly benefits should you become disabled and unable to work and earn a living.
The Supplemental Security Income program pays benefits to the elderly who are 65 years of age or older or to children and adults who are blind or disabled. SSI does not require a work history to qualify for benefits and is not funded by Social Security taxes. You may collect SSI and Social Security disability benefits at the same time, and it does not convert to regular Social Security at retirement.
SSD, on the other hand, requires that you have an earnings history from employment or self-employment and paid into Social Security through payroll or self-employment taxes to qualify for disability benefits. In essence, you must earn coverage under SSD by working for a long enough duration to qualify for benefits.
The Benefits Do Convert
The first thing you need to understand when receiving SSDI benefits is that the benefits do convert from Social Security Disability benefits to Social Security Retirement benefits once you reach retirement age. Nothing will change. You will continue to receive a monthly check and you do not need to do anything in order to receive your benefits. The SSA will simply change your disability benefit to a retirement benefit once you have reached full retirement age. When you reach that age, however, can vary depending on which year you were born in.
Do Ssi Benefits Convert To Social Security Retirement Benefits
October 23, 2017 by Harris Guidi Rosner
Do SSI Benefits Convert to Social Security Retirement Benefits?
Unlike Social Security Disability Insurance payments, Supplemental Security Income payments do not automatically convert to Social Security Retirement benefits upon reaching retirement age. As we have discussed in prior blog posts, SSI is funded by general federal taxes while SSDI and Retirement are funded by payroll taxes.
Unfortunately, not only do SSI payments not automatically convert to retirement payments, but the Social Security Administration can essentially force you to apply for early retirement benefits at 62, instead of waiting for your full retirement age. This can happen if you did not qualify for SSDI benefits, but you did work enough years to qualify for a small retirement benefit.
One of the requirements of continuing to receive SSI benefits is that you apply for any other cash benefits that are available, including retirement benefits.
However, the good news is that you will be able to receive both retirement and SSI at the same time, so your overall monthly benefit amount will not decrease. If you are currently receiving the maximum SSI amount of $735 per month and begin to receive $500 in early retirement benefits, you will still receive $735 per month: $500 will be retirement benefits, and $235 will be SSI benefits.
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