Individuals who are receiving Social Security Disability payments in Texas should not be confused when their SSD benefit changes to a Social Security retirement check after they reach full retirement age. This happens automatically. It does not affect the amount.
The change is necessary because federal law does not allow a person to receive both retirement and disability benefits on one earnings record at the same time.
Eligibility Age for Maximum Social Security Benefits
Retirement benefits are based on how much you earned during your working career. Higher lifetime earnings result in higher benefits. In most cases, your Social Security retirement benefit increases the longer you wait to take it.
For example, you may begin taking retirement benefits at age 62, but you will receive a higher amount if you wait until your full retirement age or later to apply for retirement benefits. As a chart here explains, if you start receiving benefits early, your benefits are reduced by a small percentage for each month before your full retirement age.
Considerations for Taking Early Retirement
If you are already receiving your full SSD benefit, nothing changes just because you turn 62. But if you take early retirement benefits at age 62 and are approved for SSD, you may receive both retirement and disability benefits to bring your payment up to the full benefit amount.
Here’s how taking retirement benefits early may affect your SSD payment:
- Receiving SSD before taking early retirement. If you are already receiving SSD at any age, your SSD benefit will be calculated as if you were at full retirement age. There is no reason to apply for retirement benefits at age 62 or later. At full retirement age, you will continue to receive your full benefit as a retirement benefit instead of a disability benefit.
- Receiving SSD after taking early retirement. If you take retirement benefits at age 62 and then qualify for SDD, you will receive your full SSD benefit until you reach full retirement age. Upon reaching full retirement age, your retirement benefit will be reduced according to the number of months you received early retirement benefits.
- Becoming disabled after full retirement age. If you are already receiving your full retirement benefit, becoming disabled will not make you eligible for additional benefits.
Because of the long backlog on approval of disability claims, some people who become disabled at about 62 apply for both benefits. This ensures they receive Social Security income as they await an SSD decision. Once SSD is approved, they get a better benefit plus a retroactive payment.
However, the risk of taking early retirement when applying for disability is that if your SSD application is denied, your retirement benefit will be reduced for life.
Contact a Social Security Disability Lawyer in Texas
A Social Security Disability attorney can advise you and protect your rights throughout the application process to seek your best available Social Security benefit. Contact us for a review of your financial and medical situation and assistance with your claim. Kraft & Associates, Attorneys at Law, P.C., is an established law firm that has served people in Texas for more than 50 years.
Contact Kraft & Associates, Attorneys at Law, P.C. in Dallas today at (214) 999-9999 or fill out our contact form for a free initial consultation.
