If you have a disabling medical or mental health condition, you may be worried because you heard that disability benefits change when you reach retirement age. Here’s some good news: Once approved for disability benefits, you continue to receive them as long as you meet the eligibility requirements.

Depending on the program paying the benefits, Supplemental Security Income or Social Security Disability Insurance, your benefit payments may change at retirement age. This article explains what you need to know about SSDI and SSI benefits and getting older, including what happens when you turn 65.

Disability Benefits Eligibility

A person who cannot work because of a severe medical condition expected to last for at least 12 months or cause death may qualify for disability benefits through SSDI and SSI. SSDI benefits eligibility requires a person to work long enough and recently enough at jobs where Social Security taxes are paid on the earnings.

The SSI program does not require a work history to qualify disability benefits. Eligibility is based on financial need established by having little or no income and resources, such as property and banks accounts, valued at no more than $2,000 for individuals and $3,000 for eligible couples.

Both disability programs conduct periodic reviews to ensure recipients continue to meet the eligibility requirements. Generally, a person who qualifies for SSDI and SSI may continue to receive benefits until their medical condition improves and they can return to work. SSI benefits may end when a person exceeds the income or resource limitations.

Retirement And Disability Benefits

The purpose of SSI benefits is to provide individuals in need of financial assistance with monthly cash payments for food, shelter, and other essentials. Funding for the SSI program comes from general funds of the U.S. Treasury. The benefits paid to someone through SSI do not change simply because they get older.

Disability benefits through SSDI and retirement benefits come from Social Security payroll tax contributions to the Social Security trust fund. An insured worker who becomes disabled before they are eligible to retire may qualify for SSDI benefits, but the payments convert to retirement benefits when the worker becomes eligible for full retirement benefits.

The conversion of SSDI to retirement benefits is automatic and generally does not change the amount of the monthly payment, except when a worker also received benefits from any of the following sources:

  • Worker’s compensation.
  • Pension benefits from occupations not subject to payment of Social Security taxes.
  • Public disability benefit programs.

Depending on the amount of these other benefits, a person’s SSDI benefits may be reduced. The reduction does not apply to Social Security retirement benefits, so your monthly retirement benefit may be more at conversion than your SSDI payments.

What Is Full Retirement Age For Social Security?

The age when a person with a long enough work history may claim their full Social Security retirement monthly benefit is the full retirement age. Many people believe this to be when they turn 65, but that was only true until 1983, when Congress enacted an amendment to the Social Security Act.

The amendment created a system to gradually increase the Social Security full retirement age from 65 to 67. Anyone born in 1960 or later must be 67 to be eligible to retire and collect their full retirement benefit. Don’t be confused by early retirement. Early retirement is available at age 62, but a person opting for it does not collect their full retirement benefit.

One last thing about age 65 and disability benefits through SSDI. If you qualify for SSDI benefits, you become eligible for Medicare health insurance coverage after collecting monthly disability benefits for 24 months. However, turning 65 during the waiting period automatically makes you eligible for Medicare.

Contact A Disability Professional To Learn More

 Disability representatives and lawyers can be valuable sources of information about the disability benefits available to you. Contact one today for a free consultation.