If you are disabled and unable to work, you may be collecting disability benefits from the Social Security Administration, or you may be in the process of deciding whether or not to pursue a claim. Depending upon your age, you may also be close to a point where you may be eligible for Social Security retirement benefits. If you find yourself in this situation, you may have a number of questions regarding eligibility and distribution of benefits, as well as whether you can collect both types of benefits at the same time. Let’s take a closer look at the law together.
What Types of Benefits Are Available?
The Social Security Administration ultimately administers three types of benefits – Supplemental Security Income (SSI) benefits, Social Security Disability Insurance (SSDI) benefits, and retirement benefits.
- SSI Benefits: SSI benefits are benefits funded through general revenue which are intended for disabled individuals who have income and resources below a specific limit established by the Social Security Administration. That limit may change from year to year in accordance with current economic conditions. In addition to having income and resources below the limit, in order to receive these benefits, an applicant must also have a qualifying medical condition that has rendered them unable to work for at least one continuous calendar year or more.
- SSDI Benefits: As is the case with SSI benefits, in order to receive SSDI benefits, an applicant must have a qualifying medical condition that has rendered them unable to work for at least one continuous calendar year or more. Unlike SSI benefits, however, an applicant does not need to have income and resources below a specific limit. Instead, because SSDI benefits are funded through employment taxes, the applicant must be “insured.” This means that the applicant worked a job for a sufficient time through which they regularly paid a portion of their salary into the Social Security system.
- Social Security Retirement Benefits: In addition to the two types of disability benefit programs, the Social Security Administration also offers retirement benefits to eligible individuals. Although more complicated rules may apply depending upon particular circumstances, as a general rule, to collect Social Security retirement, an individual must be at least 62 years old and have paid Social Security taxes for ten years or more, earning at least 40 work credits.
You may qualify for more than one type of benefit depending on your particular circumstances. Certain types of benefits can be collected together, while others can’t.
Which Benefits Can Be Collected Simultaneously?
As a general rule, you cannot collect SSDI and Social Security retirement benefits simultaneously. This doesn’t mean that you ultimately receive less money, however. Typically, the amount that an individual receives in disability benefits is equal to the amount they are eligible to collect in retirement benefits upon reaching full retirement age. As a result, those receiving SSDI benefits before reaching full retirement age will have those benefits automatically converted to retirement benefits. There should be no change in the amount of benefits, and typically, the benefits should continue without interruption.
There is one exception to the general rule that SSDI and retirement benefits cannot be collected simultaneously. This exception may apply to those who opt to retire early at 62, before becoming disabled. If an individual receives less than a full monthly retirement benefit before being approved for disability benefits, they may receive the difference between the two amounts. To qualify for this particular exception, an applicant must be able to prove that their disability occurred before the time they began receiving early retirement benefits. If this cannot be established, the Social Security Administration will typically deny a claim for SSDI benefits.
For those who are receiving SSI benefits, the circumstances are different. Because SSI benefits are intended to supplement low-income, eligible individuals can typically receive SSI and Social Security retirement benefits at the same time.
Understandably, all of this information regarding types of benefits, eligibility for benefits, and timing of payment may seem confusing. The good news is that help is available. At Muse Disability, we’re here for you.
Muse Disability – Here For You
Struggling with a disability is challenging. Dealing with certain aspects of the aging process can be challenging, too. During challenging times, the last thing you need is to worry and stress about how you’ll continue to pay your bills and provide for yourself and those you love. You shouldn’t have to wonder about how you’ll continue to ensure that you receive the benefits you need and deserve. That’s why the knowledgeable and experienced legal team at Muse Disability is here to help. We’re committed to always pursuing the best legal strategies on your behalf, and we’ll keep you informed and involved in your claim each step of the way. If you’re ready to get started, give us a call today. We look forward to speaking with you soon.