Social Security Disability and Retirement Benefits

If you claim disability benefits, it can been worrisome as you approach retirement age. You may not know the process when you turn 66. This can be confusing, so it’s important to understand how this works. It is not the same process as it is for other retirees. When the Social Security Administration figures out retirement benefits for those who are disabled, it does not use the same formula as it does for most other retirees.

Why people receiving disability benefits are afraid of retirement

People who are already receiving Social Security Disability Benefits may be afraid of retirement. This is mainly due to the concern that the amount that they’re receiving will change. People are concerned that their benefits will go down and that they won’t have the amount of money that they need. Keep in mind that Social Security benefits for disability are similar to how they are calculated for retirement. The difference is that the length of work history is considered. Retirement takes into consideration a 35 year work history. Since many disability recipients have not worked for a total of 35 years, they’re afraid that their benefits will go down..

How this is addressed

The Social Security Administration recognizes this concern and they take this into account when considering retirement benefits for those who have been receiving disability. They only consider the work history prior to the disability instead of the 35 year work history rule. By doing it this way, it doesn’t factor in zeros for the remaining years to get up to 35. This helps ensure that the amount that you receive will not go down for your retirement benefits from your disability benefits.

What will you receive when you transition

When you go from a claim for disability benefits to one for retirement benefits, the amount that you receive will remain the same. This will be a welcomed relief for those who are transitioning from disability to retirement benefits. While it can be a stressful thought, it doesn’t need to be as scary as many people think it is.

The key in moving forward smoothly is understanding how the process will go. You will be much less stressed when you understand that your benefits will not plummet as much as you fear they will. They will be evaluated separately and stay the same.