As you near retirement age, plenty of questions develop. Your financial status is, of course, paramount. If you currently receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits, it’s natural to want to know if your disability benefits will end, or if you are entitled to greater benefits. Here is information about some of the most common questions when it comes to SSI, SSDI, and retirement.
Is SSI or SSDI converted automatically into Social Security retirement benefits?
The beauty of SSI and SSDI and Social Security retirement benefits all going through the same government entity is that disability benefits automatically convert to Social Security retirement once you officially retire. There should not be an interruption in monthly benefit checks – and the regular monthly payment should not change – as they will simply continue under the new program. The date a person qualifies for retirement varies depending on birth year.
What if I’m not working but reach retirement age – will I still get disability benefits?
Wondering if you can get both disability and retirement benefits at the same time from Social Security? Don’t hold your breath for any unnoticed double dipping. When you are identified as unable to work or afflicted with a disability that prevents you from working, you are essentially retiring early. A person who is disabled up to retirement age will see disability benefits transition to retirement.
Does early retirement negatively impact my situation?
There is sometimes a benefits exception for individuals who opt to take early retirement. It is possible in some circumstances to receive Social Security retirement payments while waiting for approval of a disability application. This situation only occurs when a person is age 62 or older but hasn’t qualified for full retirement benefits yet.
By selecting this option, a person receives their retirement benefit right away, but they only receive 75% of the payment. Once an outstanding SSI or SSDI claim is approved, the benefits convert to the full retirement amount.
Some individuals may also receive prorated payments retroactively, a benefit that is delivered to cover the period during reduced benefits were received while waiting for the approval of a disability claim.
What are the risks of early retirement on Social Security?
Early retirement is not the right choice for everyone, as appealing as it may be after decades of working hard. Choosing to retire early comes with major risks, including the permanent reduction of the initial monthly benefit, especially for those who retire early and never apply for SSI or SSDI or for those who do apply but do not have their benefits approved.
The Social Security Administration looks over income carefully and earnings are often subject to a disability freeze. Keep in mind too that any benefits received are based on earnings. If there are years with no income or very little, benefit amounts will decrease accordingly.
Work with a Skilled SSI and SSDI Attorney
If you are ready to apply for Social Security, SSI, or SSDI in Michigan, contact the skilled attorneys at Thurswell Law for support, guidance, and help in completing applications. Schedule a consultation with Thurswell Law by calling (248) 354-2222 today. We do not charge any fees until we win.