Author: Staff Writer

Continuing to receive Social Security Disability Insurance (SSDI) benefits depends on whether you remain disabled or if your condition improves.

If you receive SSDI benefits, Social Security will periodically conduct a review of your case file to ensure that you still qualify. If your disability might improve, this review happens about every three years. If the expectation is that your disability will not improve, this review happens every seven years.

Suppose your case review finds that your medical condition has not improved sufficiently to allow you to work. In that case, your social security disability benefits will continue until you reach full retirement age. Your full retirement age is when you are 65 to 67 years old, depending on your birth year.

However, if your case review finds that your medical condition improved sufficiently to allow you to perform regular work, then the social security disability payments will stop. If you disagree with the conclusion of your case review, you have the right to appeal the decision.

Here are some frequently asked questions about Social Security disability benefits and retirement:

What is the difference between SSDI and SSI?

Sometimes these two programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), are confused with each other. They are both managed by the Social Security Administration, yet are different programs.

Occasionally, you may also see the use of SSI to represent ordinary Social Security income. This alternative use of the acronym is another source of confusion because Social Security income is retirement income. In contrast, Supplemental Security Income is for those with limited resources, not solely retirement income.

Social Security Disability Insurance (SSDI) is an insurance program paid for by the payroll tax deductions for Social Security. The current Social Security tax rate for 2022 is 6.2% paid by the employer and 6.2% paid by the employee, equaling a total of 12.4%. If you have Social Security taxes withheld from your earned income, you will have this insurance coverage.

SSDI payments require SSA approval of disability status, and the amount paid depends on your work history. If you become disabled and qualify for SSDI, you will receive monthly payments that are the same amount as you would get if you were already at full retirement age.

Related Topic:

https://www.everydayresources.com/posts/benefits-and-insurance-for-people-with-disabilities

Supplemental Security Income (SSI) is based on age OR disability and having very limited income and financial resources. SSI does not depend on any work history.

Is it possible to get SSDI and SSI at the same time?

Yes, it is possible to receive payments from both programs if the amounts of both are small enough. SSDI payments cause a reduction in the amount of SSI. If the SSDI payments you receive are high enough, this can disqualify you from getting SSI payments.

SSDI payments are, on average, higher than SSI payments. SSDI payments do not depend on having limited financial resources.

Here are the main differences between SSI and SSDI:

• Eligibility: SSI is available for those 65 or older with or without a disability and at any age for those who are blind or disabled with no work history requirement. SSDI is available for those who are disabled and have sufficient work history to qualify.
• Average Monthly Benefits: SSI payments in 2022, average $604 per month (maximum is $841 for an individual and $1261 for a couple). SSDI payments in 2022, average $1,358 per month with a maximum of $3,345 per month.
• Financial Limits: SSI requires having very limited financial resources (under $2,000 for an individual and $3,000 for a couple) and unearned/earned income limits. For example, under $861 per month for unearned income for an individual and $1,281 for a couple. Higher amounts are allowed under the SSI program for countable earned income. SSDI does not have financial resource limits but has an earned income limit in 2022 of $1,350 per month for those who are disabled but not blind and $2,260 per month for those who are blind.

If you are 65 or older with very limited resources and income, you may qualify for SSI payments without needing to be disabled. You may also be eligible for Medicaid health insurance coverage and the Supplemental Nutrition Assistance Program (SNAP), commonly known as “food stamps.” Some states supplement the SSI payments to pay higher amounts than the federal payments.

When is the full retirement age for me?

Full retirement age (FRA) increased by law in 1983 from 65 years old up to a maximum of 67 years old now.

FRA depends on the year of your birth, according to this chart:

Year of Birth	Full Retirement Age
1937	65
1938	65 and two months
1939	65 and four months
1940	65 and six months
1941	65 and eight months
1942	65 and ten months
1943 to 1954	66
1955	66 and two months
1956	66 and four months
1957	66 and six months
1958	66 and eight months
1959	66 and ten months
1960 and later	67

The Social Security Administration has a useful online tool to calculate your full retirement age.

How about Medicare at age 65?

When you reach 65, that is still the same year you qualify for Medicare. Be sure to apply for Medicare when you turn 65 to avoid paying the penalty to join later. Medicare Part A is free, and you have options to consider about paying an insurance premium to get Medicare Part B. You may want to consider paid supplemental insurance such as Medicare Advantage programs.

Will my disability payment increase if my disability gets worse as I get older?

No. Your monthly SSDI payment does not change if your condition becomes worse. The benefits are calculated based on your earnings history. The amount of disability payment is the amount you would receive if you were at full retirement age when you became disabled.

The Social Security Administration (SSA) approves a disability claim based on your inability to perform work due to a disability expected to last 12 months or longer or result in death. Approval of disability status is the same as being fully disabled, even if your condition subsequently deteriorates more.

If your condition improves, you must inform the SSA, especially if you can go back to work. You must also undergo a case review about every three years for a disability that might improve and about every seven years for a permanent disability. Losing disability status means your monthly SSDI payments will stop.

What happens with my SSDI when I hit full retirement age?

If you still qualify as disabled, your disability benefits automatically convert to retirement benefits when you reach full retirement age. You need to do nothing as this process happens internally in the Social Security Administration’s system.

Will full retirement age change my benefit amount?

Social Security benefits from disability insurance calculations have the same basis as if the disabled person reached full retirement age when they became disabled. If you become disabled when younger than full retirement age, you can think of this Social Security disability payment as equal to early retirement with full Social Security benefits.

When you reach full retirement age, you qualify for 100% of the retirement benefits even if you are not disabled as long as you have sufficient work history.

Usually, you do not see any change when the SSDI benefits convert to retirement benefits when you reach full retirement age.

It is helpful to check your work history record and see your Social Security deductions taken from your paychecks (and matched by your employer) for each year you earned income. You can do this easily by getting an online MySocialSecurity account.

The same applies to your spouse receiving benefits based on your work record. Those benefits automatically change from disability to retirement benefits when you reach full retirement age. However, if your spouse takes these benefits before your spouse reaches full retirement age, their benefits are lower.

It is helpful to work with a financial professional who understands the Social Security rules to make the best decisions about when to take retirement benefits if you (or your spouse, if you have one) qualify for them.

There is one exception. The exception applies if, in addition to receiving disability benefits, you also receive worker’s compensation payments or another government payment such as public disability benefits from a government job.

Since you do not pay social security taxes on these other disability payments, your disability benefits from Social Security are reduced by them. This reduction ends at full retirement age, so your total benefits would increase when you reach your full Social Security retirement age.

Can I increase my benefits when I reach retirement age?

If you reach retirement age and are still collecting Social Security benefits by receiving SSDI, your benefits cannot increase by taking any action on your part. Your SSDI monthly benefits covert to a retirement benefit for the same amount.

Another automatic change happens if you receive worker’s compensation or public disability benefits from a government job. Before reaching full retirement age, those payments reduce your SSDI benefits. After full retirement age, those reductions are not necessary, so your total monthly benefit payments would increase.

Can I work if I receive SSDI benefits?

When you collect social security disability payments, any earned income may reduce the amount of your monthly benefits. However, when you reach full retirement age, you are no longer hindered by limits on your earned income. After reaching full retirement age, any amount you make from working does not lower your monthly Social Security benefits.

What happens to my benefits when I reach retirement age if I return to work?

If you can work before the full retirement age, there is a possibility of increasing your Social Security retirement benefits. This increase may happen if your earnings improve your Social Security monthly benefits calculations.

The Social Security Administration has a free, voluntary Ticket to Work program that helps disabled people who want to find work. Under this program, it may be possible to test your ability to work for up to nine months without reducing your SSDI benefits.

What’s required for me to make the transition to full retirement?

Transitioning from receiving Social Security disability insurance payment to collecting Social Security retirement benefits is automatic when you reach full retirement age.

Your monthly benefit payments will not change; however, you will no longer be subject to any of the rules for SSI disability payments. You will not need to have any further case reviews after reaching full retirement age. You will still get your monthly payments when you reach retirement age, even if your disability improves.

What about SSD and early retirement?

You cannot take early retirement at age 62 if you receive Social Security disability payments. You would not want to do this because your early retirement payment would be up to 30% lower than the SSDI monthly benefits, which come from the rate calculated for your full retirement payments.

You might only consider changing to early retirement pay if you lose disability status. If you lose your disabled status at age 62, you would have the option to request early retirement payments from Social Security if you qualify for them. Losing your disabled status from a case review at age 62 would be a valid reason to consider early retirement.

Your monthly check from early retirement would be lower than the amount you receive as disability benefits; however, this might be preferable to not receiving any payments. In this circumstance, you would also have the option to wait until full retirement age to receive all your benefits that match the disability payment amount you were getting before you lost your disability status. That wait may be many years.

Additionally, you have the option to delay receiving benefits to age 70 to receive an increased monthly payment from Social Security. Depending on your year of birth, your retirement benefits payments may increase by up to 32% above the full retirement pay. It may be helpful to work with a financial professional to understand these options. The best choice for you depends on your particular circumstances.

How does early retirement impact spousal benefits?

Social Security disability payments come from the amounts projected for your full retirement age. A spousal benefit paid out based on your work history record is not automatically upgraded to the level paid at full retirement age.

If your spouse applies for the spousal benefit before the spouse reaches full retirement age, then benefits will be based on the early retirement amount (up to 30% lower), which is a permanent reduction.

Can I switch from Social Security retirement benefits to Social Security disability benefits?

Yes, it is possible to switch from Social Security retirement benefits to Social Security disability benefits under certain circumstances. Suppose you filed for early retirement benefits and started receiving Social Security payments when you were only 62. Then, you became disabled.

Since you are not yet full retirement age, you may receive a higher payment if you are qualified as disabled. The difference is that disability payments would be at your full retirement age, which are up to 30% higher than early retirement payments.

In this special circumstance, it is worth evaluating if you should apply for disability for the few years between the early retirement age of 62 and your full retirement age based on your birth year that could be from 65 to 67 years old.

If you retire early and then later realize that a medical condition qualifies you for disability benefits, it is possible to claim disability payments retroactively.

Disability claims may take many months, sometimes years, for approval and might face denial. You may want to apply for early retirement benefits while waiting for your disability claim to be approved or denied to have some Social Security income in the meantime.

It is also wise to consider working with a disability attorney for a complex case. A Social Security disability attorney is a specialist in working with Social Security benefits. A disability lawyer may help if your disability claim faces a denial and the decision needs an appeal.

The rules regarding Social Security disability benefits are complex and constantly changing. It is helpful to work with a financial professional who understands the current regulations and check with the Social Security Administration website for the most recent information about Social Security disability benefits.

Children who have a disability that renders them unable to work may be eligible for Social Security disability benefits under special provisions. The benefits they might qualify for are Supplemental Security Income (SSI) payments, which are income-restricted.

What Are the Medical Qualifications for Children to Receive SSI Payments?

Supplemental Security Income payments are different from welfare, and one of the major differences is the medical requirement. Children are only eligible for SSI payments if they suffer from a disabling medical condition that causes “marked and severe functional limitations.” The medical condition must have resulted in disabling functional limitations for at least 12 months, or the condition must be terminal.

Medical professionals and a Social Security disability attorney can help determine whether a child’s condition meets the medical qualifications for SSI.

What Are the Income Limits for Social Security Disability for a Child?

Financial qualifications apply both to a child’s earnings and their family’s income. In order to qualify for Social Security Disability through Supplemental Security Income, both income limits must be met.

What Income Limits Apply to Disability Benefits for a Child?

The child themselves generally cannot earn more than $1,350 per month, and the calculations are on a month-to-month rather than an annual basis. Their income can’t be more than $2,260 if they are blind. The federal government recognizes blindness as a uniquely challenging disability in such a visually oriented world, and thus allows blind children and adults higher income limits.

As far as the child’s income limit is concerned, the $1,350 (or $2,260) monthly maximum takes into account only income that’s earned from “substantial gainful activity” — work. Children who are fortunate to receive earnings from investments, interest or other assets usually don’t have to include these when calculating their individual income. All income must be included in the family calculations, however.

(All figures provided are for 2022. Figures vary slightly from year to year, most often increasing a nominal amount.)

What Family Income Limits Apply to Disability Benefits for a Child?

Family income limit calculations primarily focus on the parents’ income, for parents are typically the ones who claim their child as a dependent. They also have the highest incomes within a family in the vast majority of cases.

The Social Security Administration takes into account both the patients earned income (from substantial gainful activity) and unearned income (from non-work sources). 

Parents’ income is likewise considered on a monthly rather than annual basis. Adding up all income within a month is a fairly straightforward process, even if doing so requires checking income from many sources. 

Child Benefit Standard Calculation

The gross income isn’t what the SSA looks at, though. Several numbers are subtracted from the parents’ gross income:

1. Government Payments: All income earned through government programs (e.g. food stamps, welfare, stimulus checks, etc.) is subtracted. SSA benefits such as SSDI are one government program that doesn’t get subtracted.
2. Tax Refunds: Any federal or state tax refunds are subtracted (including advance payments for the Child Tax Credit). This keeps refunds from messing up income limits in any one month.
3. A flat amount of $397 is subtracted for each non-disabled child in the family. This is subtracted first from non-earned income, and then from earned income once non-earned has been exhausted. It’s the same amount as the difference between individual and couple SSI limits.
4. A flat amount of $20 is subtracted (regardless of whether there are one or two parental income earners). This again is subtracted from non-earned income if available.
5. A flat amount of $65 is subtracted. This is subtracted from earned income, regardless of whether any non-earned remains.
6. The total earned income at this point is reduced by 50 percent, halving the amount of income from actual work.
7. The SSI benefit rate for the parents is subtracted from non-earned and earned income remaining. This is $794 for children who live with a single parent, and $1,191 for children who live with both parents/a parent and a stepparent.
8. The remaining earned and non-earned parent income is then divided equally among all disabled children in the household. The entire amount is attributed to the child if they’re the only child in the family who is disabled. The amount is proportionally deemed if there are multiple disabled children.

Approval and Allowance Calculation

The resulting amount that’s deemed to the child must not exceed the individual maximum income of $1,350 (or $2,260). This amount is added to any earned income that the child personally receives when checking the maximum allowances.

The child should be approved for Supplemental Security Income if their earned and deemed income is less than the maximum. 

Cash benefits payments are normally made immediately if the child suffers from total blindness, total deafness, muscular dystrophy, cerebral palsy, severe intellectual disability (for children 4 or older), symptomatic HIV, down syndrome, and birth weight less than 2 pounds 10 ounces (for children 3 or younger). Any other medical condition can take three to five months to review before payments are made.

A review is conducted at least every three years, or more often in some cases.

Child Benefits With Child Support Calculations

For parents who receive child support, one-third or the payments received are included in the parents’ income when calculating SSI eligibility for a child. Thus, the child support received within a month should be divided by 3 before adding it to income.

This is included before anything is subtracted, and thus is subject to the flat amount deductions, halving and non-disabled child deductions as noted above.

Child Benefits Received from Disabled Parents’ Calculations

Any Social Security Disability Income (SSDI) or Supplemental Security Income (SSI) payments that parents receive are included as normal parent income for the purposes of calculations.

SSDI/SSI payments are included at the full amount received (and not divided by 3), but they are subject to the flat amount deductions, halving and non-disabled child deductions noted.

Child Benefits With Alimony Calculations

Alimony is included as parent income when determining eligibility. Unlike child support, it’s included at the full amount received. Alimony is still subject to the flat amount deductions, halving and non-disabled child deduction, though.

Child Benefits for Disabled Children in Medical Facilities

For disabled children who are in a medical facility that health insurance pays for, SSI benefits are normally set at $30. This assumes that the child’s income qualifies, of course.

How Deeming Affects a Child’s Eligibility for SSD Benefits

The amount that remains after all of the calculations have been completed gets assigned to the disabled child. The assigning is referred to as “deeming.”

Any deemed money is considered income for the child, and gets added to any earned income that they have. The total amount is then used to determine eligibility, with the child receiving SSI benefits if the amount is under the maximum allowance (provided their medical condition qualifies). 

Again, the maximum disability determination allowance is $1,350 for most disabilities and $2,260 for complete blindness. This is for each disabled child within a family.

Get Help Navigating SSI Benefits for a Disabled Child

As this rather lengthy explanation shows, the income eligibility calculations required for a disabled child to receive Supplemental Security Income payments are lengthy and involved. All income sources must be correctly tabulated, and then all applicable deductions must be taken.

Because this process is complex, parents should consult a knowledgeable Social Security Disability attorney for assistance with determining eligibility. Eligibility must not only be calculated correctly to determine qualification, but also so there are no delays or other issues due to inaccurate calculations. An SSDI attorney will be familiar with these calculations, having done disability benefits calculations many times. 

Of course, an attorney can also assist with determining whether a medical condition qualifies. Contact an attorney now for a consultation, so you can apply and begin receiving payments as quickly as possible.