If you rely on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits, approaching age 62 will likely raise some new questions about your financial security. Will your benefits stop? Will they automatically change to retirement? The outcome depends on which type of benefits you’re already receiving. Knowing how these programs work at 62 can help you protect your income and avoid unexpected reductions.
Early Retirement vs. Full Retirement
Before looking at SSDI and SSI separately, it’s important to understand how retirement benefits work.
Early retirement can begin as early as age 62. However, individuals who apply for early retirement will see their monthly benefits permanently reduced for every month claimed before reaching full retirement age. So, the earlier you claim, the greater reduction you’ll see in benefits. For someone whose full retirement age is 67, claiming at 62 results in about a 30% cut for the rest of your life.
Full retirement age (FRA) is the age at which you’re entitled to 100% of your retirement benefits based on your lifetime earnings. For people born in 1960 or later, the full retirement age is 67. For those born before 1960, it ranges between 65 and 66 years and a few months.
What Happens When You Turn 62 and Are On Disability?
If you are receiving SSDI when you turn 62, you do not have to take any action. Your SSDI benefits will continue exactly as they are until you reach full retirement age. At that point, the SSA will automatically convert your SSDI to retirement benefits at the same monthly amount.
SSDI benefits are designed to match the retirement benefit you would receive at FRA, so waiting ensures you don’t lose any monthly income. Once you reach FRA and the conversion occurs, continuing disability reviews (CDRs) stop because you no longer need to prove that your disability prevents you from working.
What Happens to Your SSI When You Turn 62?
If you receive SSI, you are legally required to apply for those retirement benefits once you become eligible in order to continue receiving your SSI. SSI is a program of last resort, and the SSA mandates that recipients apply for any other cash benefits for which they may qualify. Failure to apply within the required timeframe can result in a suspension of your SSI payments.
Some SSI recipients may not have qualified for SSDI originally, often because they did not have enough recent work history. However, many of these individuals do qualify for a small Social Security retirement benefit based on lifetime work credits. When you apply for retirement benefits at 62, you can continue to receive SSI. Your total monthly payment will generally remain about the same, although SSI may be reduced based on the amount of your Social Security retirement benefits.
Get SSDI and SSI Guidance From Jeffrey Freedman Attorneys
Understanding what happens to your disability benefits at age 62 can raise a lot of questions, especially when SSDI and SSI follow different rules. If you’re still applying for benefits or have been denied, the experienced team at Jeffrey Freedman Attorneys can help. For decades, we’ve guided clients through the SSDI and SSI application and appeals process to secure the benefits they deserve. Contact us today for trusted help with your Social Security disability claim.