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When you rely on Social Security Disability Insurance (SSDI), understanding how it fits into your overall financial picture is important. Whether you have other income, like a pension or savings, or receive support from family, knowing how these resources affect your benefits can help you avoid surprises. Balancing these factors may seem complicated, but understanding how they interact can help you make better decisions. We can help you make sense of it all so you can protect your financial stability.
Social Security Disability Benefits and Pensions
If you’re receiving a pension along with Social Security Disability Insurance, it’s important to understand how the two interact. Generally, private pensions do not affect SSDI benefits, so if you’ve earned a pension from a private employer, you can usually receive both without issue. However, government pensions are treated differently. The Windfall Elimination Provision (WEP) applies to individuals who receive pensions from jobs where Social Security taxes were not withheld, such as certain federal, state, or local government jobs. This provision may reduce your SSDI benefits, but it won’t completely eliminate them.
It’s also important to note that while SSDI is typically unaffected by private pensions, other government benefits you may be eligible for could be impacted by your pension income. If you have questions about how your pension could affect your SSDI benefits or other forms of assistance, we can help you evaluate your situation and find the best path forward.
Savings and Investments
When it comes to savings and investments, Social Security Disability Insurance and Supplemental Security Income (SSI) are affected in very different ways. SSDI is based on your work history and doesn’t consider your savings, investments, or other unearned income. This means that having money in the bank or investments, like stocks, won’t impact your SSDI benefits.
However, if you receive SSI, it’s a different story. SSI has strict asset limits—generally, individuals cannot have more than $2,000 in assets, and couples are limited to $3,000. Assets include things like savings accounts, stocks, bonds, and other investments. If your resources exceed these limits, you may lose eligibility for SSI.
If you’re concerned about how your savings or investments might impact your disability benefits, we can provide guidance to ensure you stay within the rules and avoid any surprises down the road.
Family Support and Other Income
Family support and other income can affect your disability benefits, but it depends on whether you’re receiving Social Security Disability Insurance or Supplemental Security Income. If you’re receiving SSDI, family support, such as financial help from relatives, won’t impact your benefits because SSDI is based on your work history, not your current income or resources.
However, if you’re receiving SSI, family support and other forms of income can reduce the amount you receive. SSI has strict income limits, so even gifts or financial support from a spouse, family members, or friends could lower your monthly benefits. SSI is a needs-based program, and the Social Security Administration looks at any income or support you receive when determining your eligibility and benefit amount.
We can help clarify how different types of support may impact your benefits and what steps you can take to protect them.
Combining Benefits
If you receive Social Security Disability Insurance along with other benefits, such as workers’ compensation, you may see an adjustment in the amount you receive from SSDI. This process, known as an offset, occurs when the total amount of benefits exceeds a certain limit. For example, if your combined benefits surpass 80% of your average earnings before becoming disabled, SSDI may reduce the amount it pays out. However, you can still receive both benefits, just in a smaller amount. We can help you understand how these offsets work and ensure you receive the maximum benefits available.
How We Can Help You Maximize Your Benefits
At the Law Office of Carey Thompson, P.C., we understand how complicated it can be to balance Social Security Disability benefits with other income and resources. Our team can guide you through the process, making sure you receive the benefits you deserve without unintended reductions. Whether you need help understanding pension impacts, SSI asset limits, or benefit offsets, we’re here to assist you. Contact us today to schedule a consultation and get personalized guidance for your situation.