There’s no reason to be concerned about changes to your disability benefits at age 65. As long as you continue to meet the requirements for Social Security Disability, you continue to receive monthly payments. So, why do you hear and read about changes to disability benefits after 65? Here is what you need to know.
Social Security Disability Insurance Benefits After You Turn 65
The retirement system established for America’s workforce by the Social Security Act of 1935 did not provide for the payment of benefits to workers who became disabled and unable to work before they were old enough to retire. That changed two decades later with the addition of the SSDI program to the Social Security Act.
The Social Security Administration oversees the SSDI and retirement programs. Funding for both programs comes from the Social Security Trust Fund. When a person receiving SSDI benefits reaches full retirement age, the disability payments automatically convert to retirement benefits.
Full Retirement Age For Social Security
The age a person must be to collect their Social Security retirement benefits without them being reduced is their full retirement age. Early retirement, available when a worker turns 62, pays reduced retirement benefits. The reduction can be as much as 30%.
You avoid the early retirement reduction by waiting until full retirement age. Full retirement age is based on a person’s birth year. For example, anyone born in 1960 or later can retire with full benefits at 67.
A person born in 1960 would be 65 years old in 2025. If they receive SSDI benefits, their disability payments continue for another two years until they turn 67.
Transition Of SSDI To Retirement Benefits
The transition of your disability benefits happens automatically. For most people, the conversion to retirement payments does not change the amount they receive.
If you received public disability benefits while also receiving disability payments, you may be in for a pleasant surprise: The retirement benefits could be more than you received through SSDI.
Benefits received from the following sources may reduce SSDI benefits:
- State disability benefit programs.
- Workers’ compensation.
- Retirement benefits received because of a disability.
- Civil service benefits that you receive due to a disability.
The combined benefits that you receive from these sources and your SSDI cannot exceed 80% of your average pre-disability earnings. If they do, your SSDI benefits will be reduced. Fortunately for you, the reduction does not apply to retirement benefits after the conversion.
An advantage you have when receiving SSDI benefits and turning 65 has to do with Medicare coverage. SSDI recipients must wait 24 months from the month they begin receiving disability benefits before Medicare coverage starts in the 25th month. However, one of the changes to disability benefits after 65 is that your waiting period ends when you turn 65, the age when Medicare generally begins.
The last change that you’ll notice when your disability benefits convert to retirement is the elimination of continuing disability reviews. After approval of your claim for SSDI, the Social Security Administration must periodically review your claim to ensure that you continue to meet the requirements to receive your disability payments. The reviews end when you begin receiving Social Security retirement.
Supplemental Security Income Benefits
If you receive SSI benefits with or without SSDI, the SSI payments do not change at retirement age. The SSI program does not receive funding from the Social Security Trust Fund. Its funding comes from the general tax fund of the U.S. Treasury, so your SSI benefits do not change as you age.
When you turn 65, you may notice a minor change to your SSI disability payment. Instead of receiving the monthly SSI payment because of a disability, you will receive it because of your age.
Consult A Disability Lawyer
If you have questions or need representation in connection with SSDI or SSI claims, contact a disability lawyer.
