Once you begin receiving SSDI or SSI benefits, you do not want to do anything to jeopardize your disability income. However, there could be changes in your resources or income that impact your eligibility for Social Security disability payments. Retirement benefits are one of the things that could impact SSI and SSDI payments.
Before you voluntarily begin drawing form your retirement account, talk with a Texas disability attorney. You need to understand the impact of receiving payments from your retirement account when you collect Social Security disability benefits. You also should review your options to determine how to maximize your monthly income from all sources.
What Happens to My SSI Benefits if I Begin Receiving Retirement Income?
Supplemental Security Income (SSI) is a needs-based disability benefit. It is not based on your work history. Social Security retirement is based on your work history. The amount you draw for Social Security retirement is based on your average lifetime earnings. Unlike SSI, where you live or who you live with does not impact your retirement income.
If you qualify for Social Security, your SSI payments could decrease or end if the retirement funds increase your income over the limit for SSI benefits.
The same is true for private retirement accounts and pension payments. If you receive income from private retirement accounts or pension accounts, the income could disqualify you for SSI benefits.
What Happens to My SSDI Benefits if I Begin Receiving Retirement Income?
Generally, individuals are not eligible to receive SSDI (Social Security Disability Insurance) benefits and Social Security. However, your SSDI benefits should convert to Social Security when you reach full retirement age. In many cases, your monthly benefit will not change.
Unlike SSI benefits, private retirement income should not impact your SSDI benefits. However, there are some cases in which your SSDI payments could be reduced if you begin receiving private retirement income.
What Is My Full Retirement Age?
Your birth year dictates your full retirement age. Therefore, your full retirement age could be younger or older than someone else.
For example, if you were born between 1943 and 1954, your full retirement age is 66. However, in 1960 or later, your full retirement age is 67.
When you turn 62, nothing should happen. Although you could apply for early retirement, you are not required to do so. Retirement income will only impact your SSI or SSDI benefits when you reach full retirement age.
SSDI recipients do not need to do anything. As stated above, the Social Security Administration automatically converts the SSDI benefits to retirement benefits.
However, SSI recipients should discuss their situation with a disability attorney. They could be entitled to more retirement income even if they never worked or did not earn enough work credits. For example, they may be able to draw benefits under their spouse when their spouse reaches retirement age. They could also receive survivor benefits in some cases.
Generally, receiving retirement income and SSI benefits is a more complicated issue than SSDI and retirement income.
Contact Our Texas Disability Attorney to Discuss Your Situation
Social Security benefits can be challenging to understand. If you have questions about the disability benefits you are entitled to receive, contact our office to discuss your case with a Texas disability attorney.
You could be entitled to other benefits that may or may not impact your SSI or SSDI benefits.