Read This Before Filing for Early Social Security Retirement Because of a Disability

Many people have heard that applying for early Social Security retirement benefits is relatively quick and straightforward, while applying for Social Security Disability Insurance (SSDI) can take several months or even longer and may involve medical reviews, appeals, or hearings.

The good news is that you don’t necessarily have to choose one or the other. The best strategy depends on your individual circumstances.

If You’re Unable to Work Because of a Disability, Start by Exploring SSDI

If your medical condition prevents you from performing substantial work and is expected to last at least 12 months (or result in death), you should strongly consider applying for Social Security Disability benefits.

Of course, you must first be insured for SSDI based on your work history or, in some situations, another qualifying earnings record. Many people are surprised to learn they may qualify under a different record than they originally expected.

One of the first things I do when meeting with a potential client is determine whether they are insured and identify the record that provides the greatest benefit.

Why Disability Benefits Are Often the Better Financial Choice

For most people, the monthly SSDI benefit is based on their full retirement benefit—not the reduced amount paid for taking retirement early.

That can mean receiving hundreds of dollars more each month for the rest of your life.

Even more importantly, once you reach your full retirement age, your disability benefit automatically converts to a retirement benefit at the same amount. There is no reduction simply because you were receiving SSDI first.

What If You’re Already 62 or Older?

If you are at least age 62, you may have another option.

You can often apply for both reduced retirement benefits and SSDI at the same time. This allows you to receive income while Social Security evaluates your disability claim.

However, this decision should be made carefully.

If your disability claim is approved, Social Security will generally switch you to the higher disability benefit. Depending on your disability onset date and when you began receiving early retirement, a small reduction related to the months you received reduced retirement may remain. Even so, the disability benefit is usually higher than continuing to receive reduced retirement benefits alone.

If your disability claim is denied, you will simply continue receiving your reduced retirement benefit unless you qualify for another option under Social Security’s rules.

Every Situation Is Different

There is no universal answer.

The right filing strategy depends on several factors, including:

·         Your age.

·         Your medical condition.

·         When you became disabled.

·         Your work history.

·         Your estimated benefit amounts.

·         Your immediate financial needs.

A filing decision that is right for one person could cost another person thousands of dollars over their lifetime.

Get Advice Before You File

Before filing any Social Security claim, it is worth taking the time to understand all of your options. A few minutes of planning can help you avoid costly mistakes and maximize the benefits you have earned.

I help clients evaluate the best filing strategy based on their individual circumstances.  I will explain your options, crunch the numbers and help you make an informed decision before you file.

Disclaimer: The information provided in this article is for general educational and informational purposes only and is not intended as legal advice, medical advice, or a substitute for professional guidance. Reading this article does not create a representative-client relationship. Social Security laws, regulations, policies, and procedures may change over time, and the information presented may not reflect the most current legal or administrative developments. Every case is unique. If you have questions about your specific situation, you should consult with a qualified Social Security disability representative or attorney before making any decisions.