Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are federal programs that pay benefits to people the Social Security Administration has approved as being disabled.
Here's what you should know, including how disability program benefits are handled after age 62.
SSI and SSDI are similar and easily confused. Here's how they differ.
SSI is a safety net program that pays benefits for people with disabilities, usually based on the same definition used for SSDI, or if blind or 65 and older. Beneficiaries must have limited income and assets. State programs often supplement federal SSI benefits from the Social Security Administration. In addition, in most states, an SSI recipient will automatically qualify for health care coverage through Medicaid. SSI is not tied to a recipient's work history. You can receive SSI if you've never worked or paid Social Security taxes.
SSDI is available to people with physical and mental impairments severe enough to prevent them from engaging in their normal occupations or any other substantial work. The disability must be expected to last for at least 12 months or end in death. A person with SSDI will automatically qualify for Medicare after 24 months of receiving disability payments. Individuals with amyotrophic lateral sclerosis (ALS) are eligible for Medicare immediately.
Social Security uses a strict definition of disability that relates to your ability to perform work and the projected length of your disability. If you have a short-term or partial disability, your eligibility for SSI or SSDI will be denied.
To qualify for SSDI benefits, you must have worked in jobs covered by Social Security and have a medical condition that meets Social Security's strict definition of disability.
Disability benefits are paid to people who can't work for a year or more due to their disability.
Benefits usually continue until a person can work again regularly. Several incentives provide continued benefits and health care coverage to help people transition back to work.
You must have also worked long enough and recently enough under Social Security to qualify for disability benefits. You earn qualifying work credits, up to four each year, based on your wages.
In 2022, you earn one credit for each $1,510 in wages or self-employment income. When you've earned $6,040, you've earned your four credits for the year. The number of work credits you need to qualify for disability benefits depends on your age when your disability begins. Generally, you need 40 credits, 20 of which were earned in the last 10 years ending with the year your disability begins.
Younger workers may qualify with fewer credits.
The definition of disability under Social Security is different than other programs. Social Security pays only for total disability. No benefits are payable for partial disability or short-term disability.
Social Security qualifies a disability under Social Security rules if all the following are true:
This is a strict definition of disability. Social Security program rules assume that working families have access to other resources to provide support during periods of short-term disabilities, including workers' compensation, insurance, savings, and investments.
If you have enough work to qualify for disability benefits, Social Security uses a five-question process to determine if you have a qualifying disability:
Most people who receive disability benefits are workers who qualify on their records and meet the work and disability requirements. However, there are some additional situations as well:
Two initiatives can expedite the processing of new disability claims:
Younger workers may qualify for SSDI with fewer credits.
Before age 24 you can qualify if you have six work credits earned in the three years ending when your disability starts.
Between ages 24 to 31, you can qualify if you have credit for having worked half the time between age 21 and the time you become disabled. For example, if you become disabled at age 29, you would need 16 work credits in the past six years (between ages 21 and 29).
For age 31 and older, you need to have the number of work credits shown in the chart below. Also, you must have earned at least 20 of the credits in the 10 years immediately before you become disabled.
|
Born After 1929 and |
Work Credits |
|
31 through 42 |
20 |
|
44 |
22 |
|
46 |
24 |
|
48 |
26 |
|
50 |
28 |
|
52 |
30 |
|
54 |
32 |
|
56 |
34 |
|
58 |
36 |
|
60 |
38 |
|
62 or older |
40 |
For SSI, benefits begin the first full month after the claim was filed or, if later, the date found eligible for SSI. The maximum benefit is $841/$1,261 (single/married couple) in 2022 (based on income). Income up to those levels can reduce your benefit, and income above them can render you ineligible for the program.
For SSDI, benefits begin the sixth full month of disability. The six-month period starts with the first full month after the date SSA decides the disability began. The maximum benefit is $3,345 in 2022 (based on work history).
Collecting both benefits is permitted, but Social Security requires considerable medical evidence to back up a disability claim for either benefit.
You can apply for SSI online only if you are an adult with a disability. SSI applications are not available online for people applying for a child under age 18 with a disability or a non-disabled senior aged 65+. These individuals must visit their local Social Security office or call 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. - 7 p.m., Monday through Friday.
You can apply for SSDI benefits online at any age. You also can apply by calling Social Security at the number above or at your local office.
Application processing times vary, but the average is 3-5 months from the date of application.
People who have severe disabilities under Social Security's Compassionate Allowances classification will receive an expedited review of their SSI/SSDI applications.
If you're receiving Social Security disability benefits, what happens when you turn 62 depends primarily on which disability benefits you receive.
Typically, you are eligible to apply for early retirement when you turn 62, even though you haven't reached full retirement age. Full retirement age depends on your birth year. For example, for anyone born in 1960 or later, the full retirement age is 67.
Full retirement ages for other birth years are:
If you're collecting SSDI benefits when you turn 62 and decide to retire, you will apply for early retirement through Social Security. You will begin collecting retirement benefits at a permanently reduced rate. But if you wait until you reach full retirement age, your SSDI benefits automatically convert to retirement benefits. You don't need to take any action, and your monthly benefit amount will stay the same.
When you start receiving retirement benefits and your disability benefits convert over, continuing disability reviews will stop.
SSI benefits are treated differently when you reach 62. If you qualify for retirement benefits and currently receive SSI payments, you will be required to apply for early retirement when you turn 62. Benefits don't automatically convert, so you'll have to apply on your own. The good news is that you can collect retirement and SSI benefits simultaneously, so your monthly benefit amount will not change.
Also, anyone who is approved for SSDI benefits will be eligible for Medicare after 24 months. At that time, you are eligible for Medicare Part A at no cost. You can also enroll in other types of coverage, including Medicare Part B, but you will need to pay a premium in most cases.
You will not lose this health insurance coverage when your SSDI benefits are converted to retirement benefits. The conversion will not affect your health insurance coverage.
If you're approved for SSDI benefits, Social Security will conduct regular reviews of your condition to determine if you are still disabled and entitled to benefits. This "continuing disability review" typically takes place once every three years. However, more frequent reviews may occur for SSDI recipients with conditions that are expected to improve sooner. If your condition is not likely to improve, a review may occur every five to seven years.
If Social Security determines you are no longer considered disabled after conducting a review, your benefits will stop.
After your SSDI benefits convert to retirement benefits, continuing disability reviews will stop because you no longer need to meet the disability definition to continue receiving benefits.
Many applications are denied. If your application is rejected, you have the right to appeal, but getting a hearing can take a year or more due to a considerable backlog.
If you believe you qualify for disability benefits and have been wrongly denied, one option is to find an advocate familiar with Social Security disability policy to represent you. The National Organization of Social Security Claimants' Representatives can help. Call for a referral at 1-800-431-2804.
If you have any questions about your benefits or are unsure if you are eligible to receive SSDI or SSI, call Social Security Administration at 1-800-772-1213. You can also call or visit your local Social Security office. To find out the address of your local office you may call the toll-free number or visit the Social Security website.
DISCLAIMER: Medi-Solutions Insurance Agency, LLC is not affiliated or endorsed with the Social Security Administration or the Federal Medicare Program. Information is for educational purposes only and should not be construed as an offer of insurance, advice, or recommendation. The information provided is not intended as tax, financial, investment, or legal advice. Please consult legal or tax professionals for specific information regarding your situation.
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