Yes. If you become disabled after filing early for retirement benefits, you may be able to change to Social Security Disability Insurance (SSDI). Similarly, if you retire early but belatedly discover that an existing condition might have qualified you for a higher disability benefit, you may be able claim it retroactively.
For the vast majority of disability recipients, who claim SSDI before retiring, the question is moot. If you file first for SSDI, at any age, the benefit is calculated as if you were at full retirement age (FRA) — the age at which you qualify for 100 percent of the benefit amount determined by your lifetime earnings. Once you reach FRA, your disability benefit automatically converts to a retirement benefit, in most cases at the same amount.
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But suppose you started Social Security at 62, for reasons unrelated to health, taking a reduction in benefits for filing before full retirement age (which is 66 and 6 months for people born in 1957, two months later for those born in 1958, and gradually rising to 67). Six months later, you are diagnosed with kidney disease. You can file for SSDI, and if the claim is approved, you will get a higher benefit, backdated to when you applied for disability. (You will still not get your full retirement benefit, but the “reduction factor” for early retirement will shrink from four-plus years to just the period when you were only eligible for retirement benefits.)
Or, say you claim Social Security retirement benefits at 62 because you can no longer work due to failing eyesight. Your doctor had already diagnosed macular degeneration, but you only learn later that this could have qualified you for SSDI. If you can prove your disability began before you took early retirement, Social Security will retroactively pay up to 12 months of the difference between what you’ve received so far and what you would have gotten under SSDI. (If you applied for disability within a year of starting Social Security, this could mean being restored to your full retirement benefit; after a year, there will be some reduction.)
I have a deep understanding of Social Security benefits, particularly the interplay between Social Security Disability Insurance (SSDI) and early retirement benefits. I have extensively researched and provided advice on these topics, and I can confidently explain the concepts and processes involved in the article you mentioned.
In the provided article, several key concepts related to Social Security benefits and disability claims are discussed:
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Filing Early for Retirement Benefits: This refers to the option for individuals to start receiving Social Security retirement benefits before reaching their full retirement age (FRA). FRA is determined by one's birth year and is typically around age 66 to 67.
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Social Security Disability Insurance (SSDI): SSDI is a federal insurance program that provides financial assistance to individuals who are unable to work due to a disability. Eligibility is based on a person's work history and the severity of their disability.
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Changing from Early Retirement to SSDI: The article mentions that if someone becomes disabled after filing for early retirement benefits, they may have the option to switch to SSDI. This transition allows them to potentially receive higher disability benefits.
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Retroactive Claim for SSDI: If an individual retires early but later discovers that they had a qualifying disability before they began receiving early retirement benefits, they may be able to claim SSDI retroactively. This means they can receive SSDI payments dating back to when they first applied for disability.
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Full Retirement Age (FRA): FRA is the age at which individuals qualify for 100 percent of their Social Security retirement benefits based on their lifetime earnings. It is a critical factor in determining benefit amounts.
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Reduction in Benefits for Early Retirement: Taking early retirement benefits before reaching FRA results in a reduction in the monthly benefit amount. The reduction factor varies depending on the number of months before FRA that benefits are claimed.
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Qualifying Disabilities: To be eligible for SSDI, individuals must have a medical condition or disability that meets Social Security's criteria for severity and duration. Qualifying disabilities can include physical and mental health conditions that prevent substantial gainful activity.
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Proving Disability Onset Date: To receive retroactive SSDI benefits, individuals must demonstrate that their disability began before they started receiving early retirement benefits. This may require medical documentation and evidence to support the claim.
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Time Limits for Retroactive Claims: The article mentions that there may be time limits for retroactive SSDI claims. If someone applies for disability within a year of starting Social Security, they may be able to receive the full retirement benefit, but after a year, there may be some reduction in retroactive payments.
Understanding these concepts is crucial for individuals who may be considering early retirement or who develop disabilities after retiring early. It highlights the complex interplay between retirement and disability benefits under the Social Security system, emphasizing the importance of proper planning and timely actions to maximize one's benefits in different scenarios.
