What Happens When Your Disability Runs Out?

Disability benefits provide a financial lifeline for many unable to work due to health conditions. Understanding when these benefits might end and how to address such situations is important, helping recipients prepare for changes and navigate continued support.

Reasons Disability Benefits May End

Disability benefits can cease for several reasons, primarily tied to changes in a recipient’s medical condition or financial circumstances. Medical improvement is a common reason for termination. The Social Security Administration (SSA) determines if a recipient’s health has improved enough for substantial work. Periodic Continuing Disability Reviews (CDRs) assess continued medical eligibility, occurring every three to seven years, or more often if improvement is expected.

Returning to work can also lead to benefit termination if earnings exceed Substantial Gainful Activity (SGA) limits. For 2025, the monthly SGA limit is $1,620 for non-blind individuals and $2,700 for those who are blind. Earning above these thresholds indicates an ability to perform gainful work, ending eligibility. While a Trial Work Period (TWP) allows recipients to test their ability to work for at least nine months without immediately losing benefits, exceeding SGA after this period can result in termination.

For Supplemental Security Income (SSI) recipients, changes in income or assets beyond established limits can end benefits. SSI is a needs-based program with strict financial criteria. For 2025, the SSI income limit is $967 per month for individuals and $1,450 for married couples, with asset limits at $2,000 for individuals and $3,000 for couples. Exceeding these thresholds can lead to benefit suspension or termination.

Reaching full retirement age (typically between 66 and 67, depending on birth year) for Social Security Disability Insurance (SSDI) recipients automatically converts disability benefits to retirement benefits, usually without a change in the monthly payment. Non-compliance with treatment or reporting requirements, like failing to provide requested medical information or attending scheduled examinations, can lead to benefit suspension or termination.

The Process of Appealing a Benefit Termination

If disability benefits are terminated, individuals have the right to appeal the decision through a multi-stage process. The first step involves gathering documents like the termination notice from the Social Security Administration (SSA), updated medical records, and relevant work history details. Form SSA-561, “Request for Reconsideration,” initiates this first appeal stage and should be filed within 60 days of receiving the denial letter.

This can be filed online, by mail, or in person at a local SSA office. During reconsideration, a different examiner reviews the case, considering all evidence and any newly submitted information. If reconsideration is denied, the next level of appeal is a hearing before an Administrative Law Judge (ALJ). A request for an ALJ hearing should be filed within 60 days of receiving the reconsideration denial.

These hearings are less formal than court trials. Claimants can present their case, offer new medical evidence, and provide testimony, often with legal assistance. The ALJ reviews the case file and may question experts to make an independent decision.

Should the ALJ deny the claim, the next step is to request a review by the Appeals Council, the final administrative level of appeal. This request, typically using Form HA-520, “Request for Review of Hearing Decision/Order,” must be submitted within 60 days of the ALJ’s decision. The Appeals Council assesses whether the ALJ made any legal or procedural errors. They may affirm, reverse, or send the case back for another hearing.

If the Appeals Council denies the review or upholds the unfavorable decision, the final option is to file a civil lawsuit in a Federal District Court. This court action must be initiated within 60 days of receiving the Appeals Council’s decision. Appeal timelines can vary significantly.

Finding Other Support and Resources

When disability benefits end, or during appeal, other support and resources can help individuals manage financial and living needs. Government assistance programs, beyond federal disability, may offer temporary relief. State-specific disability benefits might be available, though eligibility and amounts vary. Medicaid and Medicare eligibility could also change, so confirming continued healthcare coverage is important.

Additional support for basic needs can come from federal and state programs like the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, which provides assistance for purchasing food. Housing assistance programs, such as Section 8 Housing Choice Vouchers and Section 811 Supportive Housing for Persons with Disabilities, offer subsidized rental housing. Local public housing authorities also manage public housing units and rental assistance programs, often with waitlists.

For those capable of returning to work, vocational rehabilitation services offer support. These programs provide:
Career counseling
Job training
Resume assistance
Interview practice
to help individuals re-enter the workforce. Programs like the Ticket to Work initiative aid disability beneficiaries in their efforts to become self-sufficient without immediate loss of benefits. Community-based resources, including non-profit organizations and local charities, can offer assistance with food, utilities, transportation, and other essential services. Support groups provide a network for sharing experiences and finding emotional support.

How Disability Programs Differ

The two primary federal disability programs, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), function differently concerning how benefits may cease. SSDI is an earned benefit, based on an individual’s work history and contributions to Social Security taxes. SSDI benefits continue as long as the individual remains medically disabled and does not engage in substantial gainful activity. The main reasons for SSDI benefit cessation are medical improvement, exceeding Substantial Gainful Activity (SGA) limits, or reaching full retirement age, at which point benefits automatically convert to retirement benefits.

In contrast, SSI is a needs-based program for individuals with limited income and resources, regardless of work history. SSI benefits can cease due to changes in income, assets, or living arrangements, as these factors directly impact financial eligibility. For example, if an SSI recipient’s countable income or resources exceed the established federal limits ($967 per month and $2,000 in assets for an individual in 2025), their benefits may be reduced or terminated. Unlike SSDI, SSI does not convert to retirement benefits at full retirement age. Eligibility continues as long as financial and disability criteria are met. SSI recipients must continuously monitor their financial situation to maintain eligibility, while SSDI recipients primarily face reviews related to their medical condition or work activity.