How Does Social Security Disability Affect Retirement Benefits
Whether retirement is only a few years away or youre a younger disabled worker planning for the future, understanding the impacts of receiving Social Security Disability Insurance is important. Find out what you need to know about disability and retirement, plus tips for managing your benefits, from the Social Security disability lawyers at SSDA USA.
Social Security : What Age Is Full Retirement
The best way to ensure you get the most out of your Social Security retirement benefits is to wait until youve reached full retirement age to apply for them. This will guarantee you get the full payment you are entitled to each month. The FRA used to be 65 years old, which is why so many people equate 65 with retirement. However, that is no longer the case.
Under current rules, the full retirement age is 66 if you were born from 1943 to 1954, according to the Social Security Administration. The FRA increases gradually if you were born from 1955 to 1960, until it reaches 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67. You can find your full retirement age by birth year in the SSAs full retirement age chart.
The question of whether you should wait until full retirement age to collect Social Security depends on many factors, ranging from the size of your retirement savings and your immediate financial needs to your life expectancy.
You can get Social Security retirement benefits as early as age 62, but your benefits will be reduced vs. what they would be if you waited until full retirement age. Based on an estimated monthly benefit of $1,000 at FRA, the SSA estimates that your payment would be reduced by anywhere from 25% to 30% by claiming benefits early.
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Social Security Child’s Insurance Payment Schedule
If your child is eligible and can start receiving benefits, the payment schedule will follow yours. Note that you’ll receive the payments separately but on the same day to help differentiate the benefits.
- If you started receiving Social Security benefits before May 1997, or if you receive both Social Security and SSI, their Social Security payment will arrive on the third day of each month.
- If your birthday falls between the 1st and 10th of the month, their payment will be sent out on the second Wednesday of the month.
- If your birthday falls between the 11th and 20th of the month, their payment will be sent out on the third Wednesday of the month.
- If your birthday falls between the 21st and 31st of the month, their payment will be sent out on the fourth Wednesday of the month.
How Much Are Social Security Survivors Benefits
The Social Security Administration calculates survivors benefits based on how much the deceased person could get in retirement benefits at full retirement age. That amount, called the primary insurance amount, is based on the persons average lifetime earnings. The higher their earnings, the more they would receive in retirement benefits.
The table below shows what percentage of the deceased persons benefit a surviving family member could get in survivors benefits, depending on their relationship to the deceased person and other factors.
Surviving family member
Drawbacks To Applying For Ssdi And Retirement
This can backfire on some people, however. If you apply for early retirement but do not receive approval for your SSDI claim, you may be stuck drawing a smaller amount of retirement for the rest of your life. If this happened to you, we may be able to help you in appealing the SSDI denial. You have only 60 days to file this appeal after receiving a notice about the SSAs decision, however, so contact us as soon as possible after you receive a denial.
When Can You File For Social Security
The earliest when you can apply for Social Security benefits is at age 61 and nine months, and you can expect to receive your first payment four months laterthe month after your birthday. Typically, Social Security benefits are paid the month after they are due or must be specified. For example, the Social Security website states that an individual who wants their benefits to start in May will receive their first benefit check in June.
For example, if you turn 62 on Dec. 15, then your first full month of eligibility is January, and your payment for that month will arrive in February. If you have already reached age 62 and met all other eligibility criteria, then you may begin collecting benefits in the same month when you apply if you specify, although your first payment still would not arrive until the following month.
Questions About The Social Security Administration
How Do I Apply For Disability Benefits?
To apply for benefits, contact the Social Security Administration at 1-800-772-1213. They have a TTY phone connection at 1-800-325-0778. You can ask SSA to send you the correct forms, and they can answer questions you may have.
How Do I Apply For Supplemental Security Income ?
To apply for benefits or to ask questions, contact the SSA at 1-800-772-1213. They have a TTY phone connections as well at 1-800-325-0778.
Supplemental Security Income is an income assistance program administered by the Social Security Administration for people who are elderly , blind, or disabled who donât have many assets and who donât earn much money
To apply for benefits or to get more information about the SSA retirement program, call 1-800-772-1213. They have a TTY phone connection as well at 1-800-325-0778.
How Do I Apply for Survivorsâ Benefits?
A family member or other person responsible for the beneficiaryâs affairs should do the following:
How Do I Apply For Medicare Benefits?
If you are already getting Social Security retirement or disability benefits or railroad retirement checks, Social Security will contact you a few months before you become eligible for Medicare and give you the information you need to register.
If you are not already getting checks, you should contact Social Security at 1-800-772-1213 about three months before your 65th Birthday to sign up for Medicare. They also have a TTY phone connection at 1-800-325-0778.
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What If I Dont Receive My Check On The Expected Date
If your check doesnt arrive on the date listed above based on your birth date or other circumstances, the Social Security Administration says to wait three additional mailing days before calling. If you still havent received it, you can then call 800-772-1213 to speak with a representative.
The SSA notes that wait times to speak with a representative are shorter Wednesday through Friday and later in the day .
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Benefits For Your Children
When you qualify for Social Security retirement benefits, your children may also qualify to receive benefits on your record. Your eligible child can be your biological child, adopted child, or stepchild. A dependent grandchild may also qualify.
To receive benefits, the child must:
- Be 18 or older and disabled from a disability that started before age 22.
Benefits stop when children reach age 18 unless they are disabled. However, if the child is still a full-time student at a secondary school at age 18, benefits will continue until the child graduates or until two months after the child becomes age 19, whichever is first.
Benefits paid for your child will not decrease your retirement benefit. In fact, the value of the benefits they may receive, added to your own, may help you decide if taking your benefits sooner may be more advantageous.
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Are Social Security Checks Retroactive
You may be able to collect Social Security Benefits up to 6 months prior. However, if you choose to collect retroactive Social Security benefits you will lose any credits you earned during those months from delaying your retirement.
For example, say you wait until 70 years old to retire. However, when applying for your Social Security Retirement benefits, you decide to collect retroactive benefits, you will lose the benefits increase you previously received during those months.
So if you had received a 1.1% increase for each month you delay retiring, you will lose that payment increase for the months you receive a retroactive payment.
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Required Information About Your Present And Past Employment
In addition to providing a wide range of information about yourself, you will also need to know numerous things about your employment history for your retirement benefits application. When applying, you will need to disclose who you worked for over the last two years and where those businesses are located. The amount of money that you earned over the last two years will also be required.
Other information regarding employment that is required to apply for benefits includes either a record of your earnings or a copy of your Social Security Statement. Individuals who dont have a copy of the statement can get one online by creating an account with the SSA. Other factors that will need to be disclosed on the application include:
- The dates you started and ended U.S. military service before 1968 if applicable
- Whether you or your spouse have even been employed with the railroad industry
- Whether youve been unable to work at any point in the last 14 months due to injuries, illnesses, or conditions and what dates work was not possible
- Whether you have received any Social Security credits in another country under its system
- Whether you expect to get or qualify for an annuity or pension from your employment under the Federal government or a state or local subdivision
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How Much Will Your Divorced Spouse Receive
If you have not applied for retirement benefits, but can qualify for them, your ex-spouse can receive benefits on your record if you have been divorced for at least two continuous years.
If your ex-spouse is eligible for retirement benefits on their own record, we will pay that amount first. If the benefit on your record is higher, they will get an additional amount on your record so that the combination of benefits equals that higher amount.
If your ex-spouse was born before January 2, 1954, and has already reached full retirement age, they can choose to receive only the divorced spouses benefit and delay receiving their own retirement benefit until a later date.
If your ex-spouses birthday is January 2, 1954 or later, the option to take only one benefit at full retirement age no longer exists. If your ex-spouse files for one benefit, they will be effectively filing for all retirement or spousal benefits.
C You Can Continue Working And Not Receive Your Retirement Benefits
If you decide to continue working and not start your benefits until after full retirement age, your benefits will increase for each month you do not receive them until you reach age 70. There is no incentive to delay filing for your benefits after age 70. Continuing to work may also increase your benefits, because your current earnings could replace an earlier year of lower or no earnings, which can result in a higher benefit amount.
If you are not receiving your Social Security benefits when you turn 65, you will need to apply for Original Medicare three months before you turn 65. If you dont sign up for Medicare Part B when youre first eligible at age 65, you may have to pay a late enrollment penalty for as long as you have Medicare coverage.
However, if you or your spouse are still working and covered under an employer-provided group health plan, talk to your personnel office before signing up for Medicare Part B. Once the covered employment ends, you may be eligible for a Special Enrollment Period to sign up for Part B. If so, you wont have to pay a late enrollment penalty.
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Benefits For Your Divorced Spouse
If you are divorced, your ex-spouse can receive benefits based on your record if:
- Your marriage lasted 10 years or longer.
- Your ex-spouse is unmarried.
- Your ex-spouse is age 62 or older.
- The benefit that your ex-spouse is entitled to receive based on their own work is less than the benefit they would receive based on your work.
- You are entitled to Social Security retirement or disability benefits.
Social Security Disability Benefits Faq
Social Security benefits are most commonly used to help retirees cover expenses. But the Social Security Administration also has disability benefits available to those who meet certain strict requirements.
In this context, a disabled person is someone who is medically unable to work for at least a year or has been diagnosed with a medical condition that will result in death. To qualify for disability payments, youll need to have worked for a specified period of time before being declared disabled. A medical provider will also have to certify that your disability exists.
Lets go over some of the most commonly asked questions about Social Security disability benefits.
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What Is A Social Security Card
Your Social Security card is an important piece of identification. You’ll need one to get a job, collect Social Security, or receive other government benefits.
When you apply for a Social Security number , the Social Security Administration will assign you a nine-digit number. This is the same number that is printed on the Social Security card that SSA will issue you. If you change your name, you will need to get a corrected card.
Documents Required To Obtain A Social Security Card
Applying for Social Security benefits usually assumes that you already have a Social Security card. So, what do you need to get a Social Security card? The answer often depends on whether you simply need a replacement or you need to apply for your first card. Getting a replacement Social Security card is usually pretty easy. You can request a replacement online as long as you are not performing a name change or changing any information on your card. Simply log into your My Social Security account at SSA.gov and request a replacement. Note that a handful of states do not allow online replacement requests.
If you need to change your name or you live in a state that does not allow online replacement requests, you should complete Form SS-5 to request a Social Security card. This is the same form used for initial card requests as well. To complete your request for a replacement, you will need to provide proof of your identity, like a drivers license. For a new card request, you will need proof of identity and citizenship status. You will also need to provide your birth certificate to prove your age. If you have any questions about the required documents, you can call the Social Security Administration toll-free at 1-800-772-1213.
Examples Of Deemed Filing Rules
Example 1: Maria turns age 62 after January 1, 2016. Her husband, Joe, is 65. They have each worked enough years to earn a retirement benefit. In March of 2020, Maria has reached her full retirement age and files for benefits. Maria is eligible for a spousal benefit on Joes record. Maria must file for both benefits. She can no longer file only for the spousal benefit and delay filing for her own retirement. She will receive a combination of the two benefits that equals the higher amount.
Example 2: Jennie is a 62-year-old widow. She is eligible for retirement benefits based on her work history, and she is also eligible for survivor benefits based on her deceased husbands record. She starts her survivor benefit this year and only applies for widows benefits. She does not start her own retirement benefit, allowing it to grow. At age 70, she starts her own increased retirement benefit, which she will receive for the rest of her life. The new law does not affect her because deemed filing does not apply to widows and widowers. Jennie will receive the higher of the two benefits
If You’re Not Sure Why You Received A Payment
If you receive a check or direct deposit payment from the Treasury Department and do not know what its for, contact the regional financial center that issued it. Only the agency that authorized the payment can explain why you received it.
If you received a check, look for the RFCs city and state at the top center. Then contact that RFC to find out which federal agency authorized the payment. It will be one of these:
If you received payment byelectronic funds transfer , or direct deposit, follow the directions under Find Information About a Payment.
Use the Treasury Check Verification System to verify that the check is legitimate and issued by the government.
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Can You Collect Social Security Retirement And Disability At The Same Time
In most cases, you cannot collect Social Security retirement and Social Security Disability Insurance at the same time. You may, however, qualify for Supplemental Security Income if you meet the strict financial criteria while drawing either Social Security retirement or SSDI benefits.
The Social Security Administration created the SSDI program to bridge the gap between when someone must leave the workforce due to a disability and when they can draw retirement benefits. For this reason, there is only one way to collect both retirement and SSDI at the same time.
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