Understanding SSDI, SSI, and Social Security Retirement Benefits

Figuring out Social Security can be tricky, especially when you’re dealing with retirement and disability at the same time. Most people can’t collect Social Security Disability Insurance (SSDI) and retirement benefits together, but there are some exceptions and other options like Supplemental Security Income (SSI) that might help in certain situations. Let’s break down what you need to know about collecting SSI and retirement benefits.

Understanding SSDI and Retirement Benefits

The Social Security Administration (SSA) designed SSDI to support individuals who must leave the workforce due to disability, bridging the gap until they reach retirement age. Under SSDI, you receive payments equivalent to your full retirement benefits until you reach the age when you can start drawing traditional Social Security retirement benefits. For most people, collecting both simultaneously isn’t an option, but SSDI transitions seamlessly into retirement benefits at your full retirement age, which varies from 65 to 67 based on your birth year.

Early Retirement and Disability

Deciding to file for early retirement at age 62 might seem appealing, but it’s not advisable if you’re already receiving SSDI due to disability. In this scenario, SSDI provides you with an amount equal to your full retirement benefit, so opting for early retirement would only reduce your monthly benefits. For instance, if you suffer a disabling injury at age 60 and receive SSDI, these benefits will simply convert into regular retirement benefits once you reach full retirement age, with no action required on your part.

The Rare Exception

There’s a rare exception where you can draw both retirement and SSDI. This happens if you take early retirement and are subsequently approved for SSDI before reaching full retirement age. Early retirement may start as a financial necessity post-injury or illness, and if SSDI approval follows, it can supplement your income up to the full retirement level, possibly including retroactive payments.

The Risks of Combining Benefits

However, if you choose early retirement and your SSDI claim is denied, you could end up permanently locked into a lower retirement benefit. If you face such an issue, appealing the SSDI denial is critical, and you must act within 60 days from receiving the SSA’s decision.

Supplemental Security Income (SSI)

While you can’t use SSDI and retirement benefits to exceed your entitled full retirement amount, SSI might be a viable option. SSI supports individuals with significant financial need—those with very low income or minimal assets. Eligibility for SSI depends on meeting strict income and resource criteria, considering assets that can be converted into cash like bank accounts, land, or personal property. The income limits are quite strict, making SSI accessible only to those in the most need.

How Can a Social Security Benefits Lawyer Help?

Consulting with a Social Security benefits lawyer can improve your understanding and strategy for claiming benefits. Lawyers can help analyze your situation to determine eligibility for SSDI or SSI, assist in preparing your application, and represent you in appeals, increasing your likelihood of a favorable outcome. Their expertise is especially valuable if you’re considering early retirement or have had an SSDI claim denied.

Get in Touch with A Benefits Representative to Find Out if You Can Collect SSI and Retirement Benefits

It’s essential to get accurate information and guidance for your specific situation. Contacting a knowledgeable benefits representative can provide clarity and direction. Whether you’re exploring your eligibility for SSDI, or collecting SSI or retirement benefits, professional advice can make a big difference. Reach out for expert assistance to make sure you maximize the benefits you are entitled to.