Generally, you cannot receive Social Security retirement benefits and Social Security disability benefits at the same time. Disability benefits are usually for pre-retirement recipients, and retirement benefits are for workers over age 62. Once you reach full retirement age, you cannot apply for Social Security disability benefits.
However, if the Social Security Administration approves the application, the early retiree may receive disability benefits to supplement his or her early retirement benefits.
For example, say you retire at age 62 with a monthly retirement benefit of $1,200 (if you wait until full retirement age, you’ll get your full retirement benefit of $1,600). You become disabled and apply for Social Security Disability Insurance (SSDI). Your disability benefit will be increased by up to $400 per month until you reach the maximum benefit.
What you need to know about Social Security pension benefits
Most (but not all) U.S. workers and their employers pay into the Social Security retirement system through Social Security taxes that are withheld from their paychecks. Workers can claim retirement benefits beginning at age 62. The Social Security Administration permanently reduces monthly benefits for those who retire before reaching full retirement age, and permanently increases monthly benefits for those who wait to claim (up to age 70).
Social Security retirement benefits do not usually replace your entire income in retirement. Most retirees supplement their Social Security retirement income with distributions from retirement plans (such as 401(k)s or deferred compensation plans), workplace pensions, investment properties, or other savings. Some people continue to work to supplement their income.
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What you need to know about Social Security Disability Benefits
The Social Security Administration created disability benefits to assist workers who leave work due to a disability before reaching full retirement age. Disability benefits are available to:
Worked long enough to meet certain standards.
Paid Social Security tax on income.
Eligible family members may also claim disability benefits based on your work history, for example, if you have a spouse or former spouse who is applying for spousal benefits, or if you have a spouse or children who are eligible for survivor benefits after you die.
Families can receive up to 50% of their disability benefits.
When multiple family members receive benefits, the total amount the family can receive is approximately 150% to 180% of the disability benefit. [0](Amounts received by a former spouse are not included in the limit and do not affect amounts received by other family members.)
Can retirees apply for disability pensions?
Once you reach full retirement age, you are no longer eligible to apply for disability benefits.
However, if you reach early retirement age, you can apply for both early retirement benefits and disability benefits. Because disability applications often take a long time to be approved, applying for early retirement benefits gives you an income in the meantime. If your disability application is approved, you will be paid retroactively the difference between your monthly disability income and your early retirement benefit.
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What if I am receiving a disability pension when I reach retirement age?
When a person receiving Social Security disability benefits reaches full retirement age, the benefits automatically convert to retirement benefits. Current law does not allow a person to receive full retirement and disability benefits at the same time. [0].
You can file for retirement benefits beginning at age 62, but there’s no benefit to filing if you’re receiving disability benefits. Social Security disability benefits provide the same monthly benefit as full retirement benefits. Instead of continuing your disability benefits until your full retirement age, filing for retirement benefits early will permanently reduce your monthly benefit.
How does receiving a disability pension affect my retirement benefits?
Receiving disability benefits for an extended period of time may reduce your retirement benefits, but it may make you eligible for other types of assistance.
Your monthly Social Security benefit is calculated based on your qualified wages, years of work, and when you retire. Social Security considers up to 35 years of earnings to calculate your benefit. If you do not have 35 years of earnings, the missing years are counted as zero. [0].
If you receive Social Security Disability benefits, those benefits do not count toward your total income for Social Security purposes. If you have no earned income in a year, your total income for Social Security purposes for that year will be zero.
If your earned income is low, see if you qualify for Supplemental Security Income, a Social Security program that provides extra monthly payments to people who earn below a certain limit.