Can I Get Disability and Retirement at the Same Time?
Understand how Social Security's disability and retirement benefits interact and transition. Get clarity on coordinating these vital federal programs.
Understanding how Social Security Disability Insurance (SSDI) and retirement benefits interact is important. While it might seem possible to receive both simultaneously, the Social Security Administration (SSA) has specific rules governing how these benefits are structured and coordinated.
Social Security Disability Benefits
Social Security Disability Insurance (SSDI) is a federal program designed to provide income to individuals who are no longer able to work due to a severe medical condition. To qualify, an individual must have worked in jobs covered by Social Security and paid Social Security taxes, accumulating sufficient work credits. The number of required work credits varies depending on age at the time disability begins, though generally, 40 credits are needed, with 20 earned in the 10 years immediately preceding the disability’s onset.
The Social Security Administration maintains a strict definition of disability, requiring that a medically determinable physical or mental impairment prevents an individual from engaging in any substantial gainful activity (SGA). This condition must be expected to result in death or have lasted, or be expected to last, for a continuous period of not less than 12 months. The monthly benefit amount for SSDI is based on the worker’s average indexed monthly earnings (AIME), which then determines their primary insurance amount (PIA).
After an individual is approved for SSDI, a mandatory five-month waiting period typically applies before benefits can begin. This means the first benefit payment is received in the sixth full month after the SSA determines the disability began. This waiting period helps ensure that benefits are provided for long-term disabilities rather than temporary conditions.
Social Security Retirement Benefits
Social Security retirement benefits offer a financial safety net to eligible individuals once they cease working or reduce their work hours. Eligibility is primarily determined by a worker’s earnings history and the accumulation of Social Security work credits, typically 40 credits (about 10 years of work).
The amount of an individual’s retirement benefit is significantly influenced by their Full Retirement Age (FRA), which varies depending on their birth year. For those born in 1960 or later, the FRA is 67, while for earlier birth years, it can be as early as 66. While individuals can elect to begin receiving retirement benefits as early as age 62, doing so results in a permanent reduction in their monthly benefit amount. Conversely, delaying the collection of benefits past FRA, up to age 70, can result in increased monthly payments through delayed retirement credits.
The retirement benefit amount is calculated based on the worker’s average indexed monthly earnings (AIME), reflecting their highest 35 years of indexed earnings. This AIME determines the Primary Insurance Amount (PIA), which represents the full benefit received at FRA.
Coordinating Disability and Retirement Benefits
The Social Security Administration generally does not permit an individual to receive two full benefits from the same earnings record simultaneously. The system is designed to provide the highest benefit for which an individual is eligible.
When an individual receiving SSDI benefits reaches their Full Retirement Age (FRA), their disability benefits automatically convert to retirement benefits. This transition is seamless, and the monthly benefit amount typically remains the same, as the SSDI benefit is generally equal to what the individual would have received at their FRA. The change is primarily an administrative reclassification, not an increase or decrease in payment.
If an individual begins receiving early retirement benefits and then later becomes disabled, they can apply for SSDI. If the approved SSDI amount is higher than their current reduced retirement benefit, their monthly payment will be adjusted to the higher SSDI amount. This adjustment treats the individual as if they had not claimed early retirement. Once they reach FRA, this higher amount becomes their retirement benefit.