How Does Disability Affect Social Security Payment Upon Retirement?
- Workers who pay into the Social Security network with Federal Insurance Contributions Act (FICA) taxes receive insurance for death and disability. These individuals also accumulate retirement benefits and Medicare benefits. If you become disabled, you must apply and qualify for disability benefits with Social Security. You cannot receive disability benefits for at least five months into your disability, and once you receive benefits, your spouse and minor children may receive partial benefits. Social Security bases disability benefits on your work history, but does not subtract disability payments from your retirement amount.
- Social Security reviews disability claimants periodically and may call and ask questions, or ask you to visit a physician to see if you are improving. You are responsible for notifying the Social Security Administration of changes in your condition and your ability to work. You may only be able to work part time, but you need to report your work to Social Security. You must also notify Social Security of worker's compensation or other benefits relating to your disability. Your spouse and minor children must also notify Social Security of changes in status, if they receive Social Security benefits based on your work history.
- If your disability benefits are low and your income and resources are low enough, you may qualify for SSI as a disabled person. This program provides federal funding to needy individuals to bring their total disability income to $674 a month, as of 2010. In other words, if you qualify for both SSI disability and Social Security disability, Social Security subtracts the disability figure you receive from the $674 to award you the difference. While Social Security does not subtract disability payments from your retirement, you are not increasing your retirement benefits while you are disabled. Retirement benefits accrue from employment and payment of FICA taxes.
- Social Security retirement is available as early as age 62 for those who have a work history with sufficient credits of work. If you receive Social Security disability (not SSI), your benefits convert to retirement benefits when you reach full retirement age. Full retirement age for individuals born between 1943 and 1954 is 66. The amount remains the same as your disability benefit, since the basis for Social Security disability is full retirement age. If others receive Social Security benefits as a result of your disability, these individuals must continue to qualify for benefits as a result of your retirement. Benefit adjustments may be necessary for others who rely on your work history for benefits.