Retirement And Social Security Disability: What To Know

Law Blog

For those who are unable to work at their jobs due to a medical or mental condition, the Social Security Administration (SSA) offers benefits. For those who have worked many years already and are close to retirement, Social Security Disability Insurance (SSDI) may help bridge the gap. To find out more about using SSDI and your Social Security retirement benefits, read on.

Ready to Retire?

If you apply for Social Security disability benefits and are approved, you are actually taking part in what might be called an early retirement. Regardless of your age, the fund that pays SSDI and Social Security retirement comes from the same place. As you have worked throughout the years, you have had deductions from your salary each pay period. The deduction is labeled FICA and goes partially to Social Security and partially to other government benefit programs. When you are either too ill to work or you reach a certain retirement age, you can apply for and receive a monthly benefit.

Know the Differences

If you begin receiving SSDI payments due to a disability, the benefit converts to retirement pay once you reach the correct age. It's vital that you pay attention to this change because the rules about SSDI, retirement pay, and income vary depending on the program you are being paid under. Under no circumstances can anyone earn both SSDI and retirement benefits at the same time.

As you approach your retirement dates, you will be informed about your benefits. The earlier you retire, the lower benefit payment you earn and the lowered rate continues throughout your lifetime. For example, if you accept the "early" retirement date, your total benefit amount is permanently lower than if you wait until your full retirement year and month. This means that if you have been receiving SSDI benefits and decide to take the early retirement date, your retirement payment could well be lower than the SSDI payment. Be extremely careful about choosing an early retirement date – once you make the choice you cannot go back and change your mind. You might be losing thousands of dollars by opting for this choice. You can continue earning your SSDI benefit until the date of full retirement.

Income Considerations

Finally, the amount you are able to earn each month faces limits with SSDI payments. When you take an early retirement, those income limits stay in place until you reach full retirement age. At full retirement age, you are allowed to earn an unlimited amount of income on top of your retirement pay.

If you've been denied your benefits, speak to Social Security disability attorney at once.


29 January 2019

File Chapter 7, and Keep Your Home

Many people assume that when they file Chapter 7 bankruptcy, they will have to give up their homes and other property. This is not necessarily the case. I am a bankruptcy attorney, and I have helped many clients file for Chapter 7 bankruptcy without giving up homes, cars, and other property. When you file for bankruptcy, the property you are allowed to keep depends on your individual circumstances and the state where you live. Most states allow exemption for property you are currently paying for. This blog will guide you through that information and help you determine if filing Chapter 7 bankruptcy is the right choice for you.