Can I Access My Retirement Benefits While Waiting for Social Security Disability?
You never planned to stop working so soon, but your health had other ideas. Now, you’re in your late 50’s or early 60’s and you’re faced with an unexpected reality: no paycheck, mounting bills, and the weight of keeping your family financially secure. Retirement wasn’t supposed to happen this way, but here you are wondering how you can bridge the gap between when you stop working and when you can get disability or retirement benefits.
You’ve heard that Social Security early retirement benefits might help, but since health issues forced you out of work, Social Security Disability retirement could also be an option. If you’re in that tricky age range—approaching retirement but not quite there—you’re probably asking, “Can I rely on early retirement benefits while waiting for a Social Security disability decision?” The answer is yes, but, as with many things, it’s not always as straightforward as we’d like.
Social Security Retirement Benefits vs. Social Security Disability
To receive your full Social Security retirement benefit, you retire between 66 and 67 depending on the year you were born.
You may have the option to take a lower benefit amount by retiring early at 62. While this does get you your retirement benefits sooner, it has the disadvantage of reducing your overall monthly payment by up to 30%, which you will be locked into permanently.
Social Security Disability Insurance (SSDI) is a program designed to support those who have paid into the Social Security system and earned enough work credits, but due to an illness or injury are unable to work until they reach their full retirement age. SSDI covers the gap between the years you were not able to work and full retirement age.
For both programs, you need to be “currently insured”, meaning that you have worked and paid in enough to Social Security to be eligible to apply.
When Am I Eligible to Take Retirement Benefits?
The full retirement benefit from Social Security starts between age 66 to age 67 depending on your year of birth. You can take early retirement for reduced benefits at 62, as stated above, but you cannot collect both retirement benefits and SSDI at the same time. If you are collecting SSDI prior to retirement age, your SSDI benefits will stop when you reach the age of full retirement, and you will collect retirement benefits instead.
Should I Wait for Retirement Benefits if I Become Disabled Close to Retirement Age?
If you are at an early retirement age, you can get early retirement benefits even if you are waiting for a decision on your disability benefit claim. If your disability claim is successful, then you will be paid the higher disability benefit amount instead of your early retirement benefit amount. However, if your case is not successful, this can backfire, as you may not be able to reverse your decision to take retirement benefits early.
If you are considering retiring early due to your health, it is well worth it to also apply for disability benefits. If you retire under early retirement, then your benefit decreases. But, if you are found disabled you are able to pull off your disability retirement at a full retirement amount (ie. it’s like you retired at your full retirement age).
Even if you are not close to early retirement age, if you are unable to work because of a condition that prevents you from doing your job, you should file for SSDI.
Seek Help and Advice before Applying for Early Retirement Due to Disability
If you are facing a disability that has forced you out of work early and you are close to or at retirement age, it can be difficult to decide the best path to take for a financially secure future. The SSDI application process can be frustrating, but for deserving and qualified applicants, it can provide much needed relief during an already trying time. Having an attorney who understands the intricacies of the Social Security Administration is invaluable during this time, and if your SSDI claim is denied, Arthur Law Firm can help you strengthen your application through the appeal process. If you are in this situation, contact us right away (419) 782-9881 for a free consultation.