Disability benefits are extremely helpful in ensuring that those with certain medical conditions have their basic needs met. These medical conditions often prevent people from working which results in limited income and resources.
Disability benefits are given to those with a medical condition that keeps them from working for a year or more. Beneficiaries will continue to receive Social Security Disability Insurance (SSDI) until they can return to work.
There are many people with disabilities who are nearing retirement age. This often leads to questions about how Social Security retirement and disability work. While both types of benefits are from the same government program, there are differences in qualifications for eligibility. Let’s dive into how to go about retiring while you are on disability and important things to know for when the time comes.
Disability retirement vs regular retirement
Disability and Social Security retirement benefits offer much of the same resources. Each supplies a monthly benefit amount to ensure beneficiaries can meet their basic needs while unable to work whether because of disability or old age. The main difference is that Social Security retirement benefits are based on age and disability benefits are based on medical conditions that keep you from working.
People often wonder if it is better to be on disability benefits or retirement benefits if they are facing early retirement due to disability. Others will have a forced retirement due to disability. Either way, it is generally better to wait until you reach full retirement age before claiming Social Security retirement benefits. If you stay on disability until you reach full retirement age, you ensure that you receive the full amount of your Social Security benefits. Claiming Social Security before full retirement age results in reduced benefits.
Can you get both disability and retirement benefits?
On a similar note, some people wonder if they can receive both disability and retirement at the same time. This is not possible. You can only get one or the other. When you reach full retirement age, Social Security disability converts to retirement benefits automatically. This means you can continue to receive disability until retirement but not after. Your social security benefits are based on income and how much you have paid in social security taxes over the year. This is why you can’t claim both benefits at the same time on the same income.
Early disability retirement
If you are considering early retirement and are actively on disability, it’s important to consider your options. Finding the best way to transition from disability to retirement to maximize your benefits takes a bit of strategy. You may also find yourself wondering: does social security disability affect retirement benefits?
In general, social security disability will not affect your retirement benefits. There are no specific social security disability retirement benefits, but the benefits you currently receive from disability will automatically switch from disability to retirement when you reach full retirement age. Disability retirement is a little different than those who claim social security retirement benefits without having received a disability.
Disability benefits and social security retirement benefits come from the same government program but have different qualifications for eligibility. Disability benefits from social security are available to anyone who is experiencing qualifying medical conditions that prohibit them from working and are subsequently experiencing financial hardship from low income and resources. Social security retirement benefits are only available after the age of 62.
Claiming social security early results in lower monthly benefit amounts. You aren’t eligible for the full amount of social security retirement benefits until you reach full retirement age which varies based on the year you were born. In general, it is best to stay on disability benefits until you reach full retirement age to ensure you receive full benefits when it comes time to switch to social security retirement benefits.