Will My Disability Benefits Change When I Turn 65?

If you are receiving disability benefits, it’s essential to understand how your age can impact your payments. Because you are already at an income disadvantage, you want to ensure you understand how age affects your benefits. As a result, many people wonder, will my disability benefits change when I turn 65? Here we look at the potential impact of reaching retirement age so you understand how your income is impacted to better plan for the future.

Understanding Disability Benefits

Disabled Americans are entitled to receive two possible disability benefits to provide financial assistance when they are unable to work:

• Social Security Disability Insurance (SSDI): You can receive SSDI benefits if you have an established work history and suffer from a physical or mental disability that keeps you from working. These benefits are earned through your Social Security tax contributions which fund the benefits.
• Supplemental Security Income (SSI): You can receive SSI if you are over 65 and disabled to supplement limited income and resources. However, those with fixed incomes under 65, who are blind and or have disabled children can also receive SSI.

Reaching Full Retirement Age (FRA): What happens to social security disability when you turn 65?

Although many people focus on the age of 65 for retirement, the age at which individuals become eligible for full retirement benefits varies based on their birth year. Known as the Full Retirement Age (FRA), this age is actually 66 if you were born between 1943 and 1954 and gradually increases if you were born from 1955 to 1960 until you reach the age of 67. As a result, if you were born in 1960 or later, full retirement benefits are not payable until the age of 67.

What is the Effect on the Benefits From Social Security Disability to Retirement?

The benefit amount you receive depends on several factors, including your work history, earnings record, and the amount you receive in disability benefits. Here we look at the effect based on the type of benefits you receive:

SSDI to retirement: Will my SSDI amount change when I reach retirement age?

Your SSDI payments begin once the SSA approves your application. They send a notice explaining how much you’ll receive and when they will start. Your payments will continue as long as your medical condition remains the same or worsens and you are unable to work. Because of ongoing medical advancements, the SSA will review your case periodically to determine if new treatments impact your ability to work. You are also responsible for reporting changes in your condition and ability to work.

You receive your benefits monthly for the same amount unless the cost-of-living adjustment changes. These increases are applied automatically each year. However, when you reach FRA, your SSDI payments automatically convert to retirement benefits. The good news is that the amount remains the same, so you don’t have to worry about your income being negatively impacted.

Can I claim early retirement at 62 when on SSDI?

In theory, yes, but it would not work to your benefit. Because your disability payments equal your total retirement amount on SSDI, when someone opts for early retirement at 62, they receive reduced benefits.

Will my SSI change when I turn 62?

Only if you opt for early retirement; otherwise, they remain the same.

Does social security disability convert to regular social security?

Yes, if you receive Social Security disability benefits, they will automatically convert to retirement benefits, and you will continue to receive the same amount.

When does SSDI change to SSI?

SSDI benefits automatically change to retirement benefits when you reach full retirement age, as you are not allowed to receive both retirement and disability benefits on one earnings record.

When Does SSDI Stop?

SSDI stops when any of the following occurs:

• When you die: However, your surviving spouse, full retirement age or older, receives 100% of your worker’s benefit amount. If they are age 60, they receive 71½ to 99% of their basic amount through full retirement age, and a surviving spouse with a disability aged 50 through 59 receives 71½%.
• When you can work: However, if you can only work below the substantial gainful activity (SGA), then you can continue to receive your benefits.
• When you reach your full retirement age: Your SSDI then turns into retirement benefits.

Can You File for Disability After You Retire?

Yes. If you become disabled during your retirement, you might qualify for Social Security Disability Insurance (SSDI). If you opt for early retirement and are under age 65, you might receive more by switching to SSDI. Once your full retirement age kicks in, your SSDI then automatically turns into retirement payments at the same payment amount.

When to Speak to a Disability Advocate

If you suffer from a disability and are not currently receiving disability benefits, you should speak to a disability advocate as soon as possible. Disability advocates specialize in disability benefits and can help you determine if you qualify to receive benefits. Even during retirement, this is a critical step to help improve your financial situation. For example, if you are disabled and opted for early retirement, you are only receiving a fraction of your benefits. This makes it difficult to afford your treatments, medication, and critical medical care. You might qualify to receive full SSDI benefits if your condition meets the medical criteria of diseases listed in the Social Security Administration’s Blue Book.

Understanding all your options is always best, especially as you approach or are already in your retirement years. Advocates like the ones at Princeton Disability are on your side and will fight for your rights to receive the full benefits you are entitled to. We have the experience to walk you through the application process and discover how you might be able to improve your financial situation to help improve your quality of life during your retirement years.

For more information about the services Princeton Disability Advocates offer, click here to schedule a free, no-obligation consultation today.