As you approach retirement, it’s natural to wonder if your disability benefits will change when you turn 65. Understanding the transition from Social Security Disability Insurance (SSDI) to retirement benefits is crucial.
Social Security Disability (SSDI) benefits will convert to regular Social Security benefits when you reach full retirement age, and the amount will stay the same. If you are receiving Supplemental Security Income (SSI), you can still qualify for these benefits after turning 65. However, you must continue to meet the eligibility requirements.
Since there may be special situations that could affect your disability payments, it’s wise to consult with a Social Security disability lawyer. At Ascend Disability, we specialize in assisting clients with their disability benefits.
Types of Disability Benefits
Understanding the different types of disability benefits is crucial for anyone navigating the Social Security system. The two primary programs are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Each program has distinct eligibility criteria and financial requirements.
SSD Benefits
SSDI is designed for individuals who have a qualifying work history and have paid Social Security taxes. To qualify for Social Security Disability Benefits, you must have a disabling condition that prevents you from working.
You must have enough work credits, which are earned through paying Social Security taxes. Generally, you need 40 credits, with at least 20 earned in the last 10 years, but younger workers may qualify with fewer credits.
SSI Benefits
Eligibility for Supplemental Security Income (SSI) is based on financial need. Individuals must have little or no income. Additionally, there are limits on resources, such as bank accounts and property. SSI is available for low-income people who are age 65 and older or 64 and younger with a qualifying disability.
Understanding Full Retirement Age
Full retirement age is the age when individuals can receive their full Social Security retirement benefits without any reduction. For most of Social Security’s history, this was age 65.
Social Security reforms in the 1980s increased the full retirement age to between 66 and 67, based on a person’s birth year. For those born in 1960 or later, the full retirement age is now set at 67.
How Long Do Social Security Disability Benefits Last?
Social Security Disability Insurance (SSDI) offers financial support to individuals who cannot work due to a qualifying disability. Understanding how long these benefits last is crucial for planning your financial future.
SSDI benefits continue as long as you remain disabled and unable to work. The Social Security Administration (SSA) performs continuing disability reviews to ensure that recipients still meet the eligibility criteria. These reviews typically occur every three to seven years.
If the SSA determines that you no longer meet the criteria, your benefits may be adjusted or stopped. If your condition persists and prevents you from holding a job, you can receive SSDI payments until you reach full retirement age.
When you reach full retirement age, your benefits will automatically convert to regular Social Security retirement benefits. Once SSDI benefits change to retirement benefits, medical reviews for eligibility stop.
When Does Social Security Disability Convert to Regular Social Security?
If you are receiving SSDI benefits, your monthly disability benefit automatically converts to retirement benefits once you reach retirement age. This transition is seamless, meaning there is no need for you to take any action. The Social Security Administration handles this process for you. Your benefits will continue without interruption.
Other Income and SSDI
Understanding how other sources of income affect your Social Security Disability Insurance (SSDI) benefits is crucial. Various income types can influence your eligibility and benefit amount. Here are some key points to consider.
Non-Social Security Pensions
If you receive a pension from work where you did not pay Social Security taxes, it may reduce your SSDI benefits. This is particularly relevant for certain government jobs or specific occupations. The Social Security Administration (SSA) uses a formula to determine how much your pension will affect your SSDI payments. It’s essential to report any pension income to the SSA.
Workers’ Compensation and SSDI Adjustments
Receiving workers’ compensation can also impact your SSDI benefits. If you are awarded workers’ compensation for a work-related injury, the SSA may adjust your SSDI payments. The combined total of your SSDI and workers’ compensation benefits cannot exceed 80% of your average current earnings before the disability. This means that if your workers’ compensation benefits are high, your SSDI payments may decrease.
Reporting Other Income
Always report any additional income to the SSA. This includes pensions, workers’ compensation, and any other sources of income. Failing to do so can result in overpayments, which the SSA will seek to recover. Keeping the SSA informed helps maintain your benefits without interruption and ensures compliance with all regulations.
SSI Benefits After Age 65
Supplemental Security Income (SSI) provides financial assistance to people with limited income and resources who are age 64 and younger with a qualifying disability or age 65 and over. Unlike Social Security Disability, there is no work history requirement for SSI.
Disabled SSI recipients can continue receiving benefits after they turn 65 as long as they meet the program’s financial requirements.
After retirement age, you can continue to receive SSI benefits if you meet specific eligibility criteria.
- Income Limits: Your income must remain below a certain threshold. This includes wages, Social Security benefits, and any other income sources. If your income exceeds the limits, your SSI benefits may be reduced or terminated.
- Resource Limits: You must have limited resources, such as cash, bank accounts, and property. Certain resources, like your home and vehicle, may not count against this limit.
Social Security performs a review at least once every three years, or every five to seven years to ensure the recipient’s income and resources are below the threshold and they are receiving the correct SSI benefit amount.
Disability, Medicare, and Turning 65
Medicare is a federal health insurance program. Typically, you become eligible for Medicare Benefits when you turn 65. However, SSDI recipients under 65 qualify for Medicaid Part A and Part B after receiving benefits for at least 24 months. Medicare Part A covers hospital insurance, while Part B covers outpatient services.
When individuals with qualifying disabilities reach 65 and become eligible for age-based Medicare, they do not need to re-enroll or submit any additional paperwork to maintain their healthcare benefits. They have the option to enroll in other Medicare programs.
It’s essential to talk to a health insurance professional to navigate coverage.
Disability, Medicaid, and Turning 65
Medicaid is a government healthcare program for low-income individuals, including those with disabilities. Medicaid covers a wide range of health services, including hospital stays, doctor visits, and long-term care. Certain services may require prior authorization, so it is wise to familiarize yourself with the specifics of your state’s Medicaid program.
In many states, SSI recipients automatically qualify for Medicaid. This means that if you are a disabled individual who has been receiving SSI, you are likely still eligible for Medicaid when you reach retirement age.
Medicaid has specific income and asset limits that you must meet to remain eligible. Generally, your income must fall below a certain threshold, which varies by state. It’s essential to keep track of your financial situation, as exceeding these limits could jeopardize your Medicaid coverage.
Some people qualify for both Medicaid and Medicare. They may be able to enroll in a Dual Eligible Special Needs Plan, a type of managed care plan that helps to coordinate coverage for those with complex medical needs.
Contact Ascend Disability
Ascend Disability is here to guide you through the complexities of the Social Security Disability system, ensuring you continue to receive the benefits you’re entitled to. With a dedicated team of experts, Ascend Disability provides the support and expertise needed to secure your financial future.
Reach out to us today for assistance in understanding your benefits and making the most of your Social Security Disability coverage.