Do Disability Benefits Change at Age 65?
A common concern the disability benefits team at American Disability Action Group hears from the people we represent has to do with changes to their disability benefits at 65. After going through an approval process that may have included appealing a claim denial, it’s understandable for people to worry.
The benefits you receive through the Social Security Disability Insurance program will change when you reach full retirement age, but you do not lose them. Here is an explanation about changes to your disability income after 65.
SSDI Benefits At 65
The Social Security Act of 1935 created a retirement system for American workers, but it did not provide benefits for workers with disabilities. An amendment to the Social Security Act in 1956 created the SSDI program to provide benefits to disabled workers who were too young for retirement.
The SSDI program allows workers to collect benefits equivalent to the monthly payments they’d receive at full retirement age. When a person receiving SSDI benefits reaches full retirement age, an automatic process seamlessly converts their SSDI to retirement benefits.
An essential thing to keep in mind about the conversion is that it happens at full retirement age. Early retirement allows a person to collect a reduced retirement benefit as early as age 62, but the reduction in monthly benefits could be as much as 30%.
Full retirement age is when a person can collect their retirement benefits without a reduction. Sorry to disappoint anyone expecting Social Security changes age 65, but your full retirement age determines when you can retire without the benefit reduction. If you were born in 1960 or later, you’ll continue receiving SSDI until you reach age 67, when it converts to full retirement benefits.
What happens when SSDI benefits convert to retirement?
Don’t expect any big changes at the SSDI transition retirement age. One month your benefit payment will come from SSDI, and the following month it will be from Social Security retirement. The amounts should be the same, but you may be pleasantly surprised by the following changes:
- You may receive more money each month: If you received workers’ compensation and other public benefit payments, your monthly retirement benefit will be greater than the SSDI payment. Public benefit payments reduce your SSDI, but they do not affect your retirement payments.
- Medicare coverage: SSDI recipients must wait 24 months from the start of their disability benefits to be covered by Medicare. You won’t see a change in disability income after 65, but you will receive Medicare coverage. Medicare becomes available to people at 65, even when you are still within the 24-month waiting period as an SSDI recipient.
- Continuing disability reviews: While receiving SSDI benefits, your case undergoes periodic reviews to determine that you continue to meet the requirements for the program. The continuing disability reviews end when SSDI benefits convert to retirement benefits.
Another piece of good news about the transition from SSDI to retirement is that it occurs automatically. Unlike when you applied for disability benefits, there are no applications or forms of any kind for you to complete. You don’t even have to call or notify anyone for your monthly benefits and Medicare coverage to continue without interruption. The whole process happens internally and automatically within the Social Security Administration.
SSI Benefits At Age 65
Retirement age does not affect the disability benefits a person receives through the Supplemental Security Income. The program, administered by the Social Security Administration, is not affected by a person reaching retirement age in the same way as SSDI benefits.
Funding for the SSDI and Social Security retirement programs comes from Social Security taxes collected and held in the Social Security Trust fund. SSI funding comes from the general fund of the U.S. Treasury composed of income and other general taxes collected by the federal government.
Because the SSI program is not connected to the Social Security retirement system, your age does not affect your ability to continue to receive benefits. As long as you meet the program requirements, SSI benefit payments continue beyond age 65. The only difference is that you receive them because of your age rather than because of disability or blindness.
SSI pays benefits to individuals who meet the income and resource limitations and are blind, disabled, or age 65 and older. When you turn 65, the benefits continue without interruption based on age instead of disability or blindness.
Let ADA Group Assist You
When you have questions or concerns about your disability benefits through the SSDI and SSI programs, the disability attorneys at American Disability Action Group can address them. Our disability professionals provide advice and skilled representation to ensure that you receive all of the benefits you’re entitled to under the law. Learn more by contacting ADA Group for a free consultation and claim evaluation.