Retirement and Disability
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I. What Happens to SSDI When We Hit Age 65?
If you remain disabled until you reach the age of 65, then you will be able to keep your Social Security Disability benefits until you reach retirement age. At that point your Social Security Disability payments will change from Social Security Disability to Social Security Retirement payments. SSDI benefits convert to Social Security Retirement benefits once you reach full retirement age (FRA).
You will continue to receive a monthly check and you do not need to do anything in order to receive your benefits.
Your full retirement age (FRA) varies depending in which year you were born.
A. SSDI: Early and Full Retirement Age
Early Retirement Age: 62 yrs.Age to Receive Full Social Security Benefits or Full Retirement Age (FRA)
| Year of Birth | Full Retirement Age |
|---|---|
| 1937 or earlier | 65 |
| 1938 | 65 and 2 months |
| 1939 | 65 and 4 months |
| 1940 | 65 and 6 months |
| 1941 | 65 and 8 months |
| 1942 | 65 and 10 months |
| 1943 – 1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
†If you were born on January 1st of any year you should refer to the previous year. (If you were born on the 1st of the month, we figure your benefit (and your full retirement age) as if your birthday was in the previous month.
B. SSDI: Benefit Amounts from Early to Full Retirement Age
Claiming benefits before full retirement age (FRA) will lower your monthly payments— you can start at age 62; the earlier you file the greater the reduction in benefits.Note: You have the option to leave early retirement benefits only once within the first 12-month period. But you must repay all monies from that 12 month period in one payment.
Here's how it works if your full retirement age (FRA) is 67.
If you start your retirement benefits at age 62, your monthly benefit amount is reduced by about 30 percent. The reduction for starting benefits at age
- 63 is about 25 percent;
- 64 is about 20 percent;
- 65 is about 13.3 percent; and
- 66 is about 6.7 percent.
C. SSDI Retirement: Work and Income
In 2024, the annual earnings limit is $22,320 if you’re under full retirement age (FRA). You lose $1 in benefits for every $2 earned over $22,320.Within the year you will reach FRA, the limit on your earnings for the months before full retirement age is $59,520. You lose $1 in benefits for every $3 earned over the limit, until you actually hit your full retirement age.
Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.
NOTE: Social Security does not count pensions, annuities, investment income, interest, veterans or other government or military retirement benefits. Social Security only counts net income if you are self-employed.
II. What Happens to SSI When We Hit Retirement Age?
If you are currently receiving Supplemental Security Income (SSI) you have to apply for Social Security retirement benefits at age 62.
Here’s why: One of the requirements of SSI (which is a needs-based program) is that if there are any other cash benefits that are available to you, you must apply for them – this includes Social Security Retirement benefits. So, you will have to start collecting your early retirement benefit, even though the retirement benefit would be larger if you were able to wait until your full retirement age.
Here’s why: One of the requirements of SSI (which is a needs-based program) is that if there are any other cash benefits that are available to you, you must apply for them – this includes Social Security Retirement benefits. So, you will have to start collecting your early retirement benefit, even though the retirement benefit would be larger if you were able to wait until your full retirement age.
A. SSI Retirement: Work and Income
Since Supplemental Security Income (SSI) is needs based:- When there are earnings at any age the “need” (benefit) is reduced by the countable income calculation.
- The asset and resource limit will remain the same as well.
- Here’s an example: If it is determined that your retirement benefit is $600, you should receive $600 as the retirement benefit and $343 as the SSI benefit to meet the Federal Benefit Rate of $943 for 2024.
- The $343 SSI benefit would be subject to the countable earnings calculation.
- The $600 would follow the early retirement annual limit of $22,320.
III. If You Receive both SSDI and SSI
A. What Happens if You Have Dual Beneficiaries?
When "dual beneficiaries" turn 62, they will continue to receive SSDI until full retirement age, at which time the SSDI will convert to Social Security retirement. (The SSDI and retirement benefit should be the same amount.) In other words, SSDI recipients are not forced to apply for early retirement benefits, so their lifetime retirement benefit is not decreased.The SSI countable earnings calculation and asset/resource limits remain.
IV. Medical Coverage
It is important you know which combination of Social Security benefits, SSDI and/or SSI, you are receiving during early and full retirement. Because the rules for Medicare and Medicaid apply in all scenarios.
For example:
For example:
- For SSDI/Medicare - your Medicare will continue during early retirement or full retirement.
- For SSI/Medicaid - Medicaid and asset limits still apply during SSI retirement at 62 yrs. of age.
- For SSDI/SSI retirement - both the Medicare and Medicaid rules apply.