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Social Security Disability and Retirement


If you are older and nearing retirement age, you may wonder how Social Security disability benefits and retirement benefits are related. If you go on disability, will you still receive a retirement benefit? If so, do you have to take it right when you reach the full retirement age, or can you delay your benefits?

To be honest, this question is not asked a lot because not a lot of people can afford to delay their benefits. Those on Social Security Disability benefits cannot work, so their disability benefits are their only source of income. Most live paycheck to paycheck, with very little savings, if any at all.

In America, the current full retirement age is 66 years. This means that when a person reaches this age, their Social Security Disability benefits will end. If they want to continue to receive monthly benefits, they will have to transition over to their retirement benefits.

However, one does not have to start their retirement benefits right away. Many people like the idea of postponing their benefits until they reach age 70. This four-year delay increases the monthly benefit amount.

Social Security Disability benefits are equal to the amount of money you would be paid every month had you opted for your full retirement benefit. This is called your Primary Insurance Amount.

Once you reach the full retirement age at 66, the amount stays the same, but the checks come from a different account. Social Security Disability benefits are converted to retirement benefits.

If you want to delay your benefits, though, you have the option to do so. You would have to contact the Social Security Administration over the phone or in writing and ask for a delay. You can delay it up to four years. The monthly benefit will grow an extra 8 percent per year, on top of any cost of living increases.

Planning for Retirement Benefits

 While the full retirement age is 66, a person can retire at any age between 62 and 70. They will have their benefits reduced or increased accordingly. A person can retire at age 62 if they wish, but their benefits will be reduced by as much as 30 percent.

Any time after a person’s 66th birthday, monthly benefit amounts start to increase. By age 66 and three months, benefits increase 2 percent. At age 67, benefits will have increased by 8 percent.  At age 68½, benefits increase by 20 percent. At age 70 or later, retirement benefits will have increased by its highest amount, at 32 percent.

Learn More About Social Security Disability Benefits

As you prepare for retirement, you’ll naturally want to make sure you get the most benefits possible. You can achieve this by delaying your benefits, if your financial situation allows for it.

You’ll want to find ways to maximize your benefits to the fullest extent. The Law Office of Michael Lawrence Varon can help. He can answer your questions so you can best figure out how to obtain benefits to pay daily expenses while saving for the future. Schedule a consultation today by calling 914-294-2145.



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