As early as age 62, you are eligible to begin receiving Social Security retirement benefits. But once you reach full retirement age, you are eligible for full benefits. Your benefit amount will rise if you wait until you reach full retirement age—that is, until you are 70 years old.
Your benefits are lowered by a tiny percentage for each month that you are younger than the full retirement age if you begin receiving benefits early.
Use the chart below and choose your year of birth to determine how much your benefit will be reduced if you start receiving benefits at age 62 and continue until you reach your full retirement age. Based on a $1000 monthly benefit estimate at full retirement age, this example
What happens to my Social Security disability when I turn 62?
Reaching age 62 can bring questions and concerns for individuals receiving Social Security Disability (SSD) benefits. This guide aims to clarify what happens to your SSD benefits at this age and provide information on other potential benefits you may be eligible for.
Income Sources and Social Security’s Earnings Test
Your SSD benefits will continue at the same rate even after you turn 62. However, when you become eligible for Social Security Retirement Insurance Benefits (SSRIB), Social Security will consider other income sources such as wages and interest. This means your SSD benefits may be reduced if your income from other sources exceeds a certain threshold. This is known as Social Security’s Earnings Test.
Social Security Disability and Retirement Benefits
It’s important to remember that SSD benefits do not automatically convert to SSRIB at age 62. You must apply for SSRIB separately to receive those benefits. If you choose to work while receiving SSD, you will be subject to the Earnings Test. This means Social Security will reduce your monthly disability payments if your earnings exceed a certain amount.
Other Benefits at Age 62
In addition to SSD and SSRIB, you may also qualify for other Social Security-related benefits at age 62, such as Supplemental Security Income (SSI) and Medicare. Your eligibility for these benefits will depend on your individual circumstances.
Key Takeaways
- SSD benefits continue at the same rate after age 62.
- Social Security considers other income sources when determining SSRIB eligibility, potentially reducing SSD benefits.
- You must apply for SSRIB separately to receive those benefits.
- Working while receiving SSD may affect your benefits due to the Earnings Test.
- Other benefits like SSI and Medicare may be available at age 62, depending on your eligibility.
Understanding the nuances of Social Security benefits at age 62 is crucial for making informed decisions about your financial future. Consulting with a qualified financial advisor or Social Security expert can help you navigate the complexities and ensure you are receiving the benefits you are entitled to.
Additional Considerations:
- The amount of SSD benefits reduction due to the Earnings Test varies depending on your earnings and other factors.
- You may choose to delay claiming SSRIB beyond age 62 to increase your monthly benefit amount.
- Working while receiving SSD can have positive implications, such as gaining work experience and increasing your future retirement benefits.
- It’s essential to carefully consider your individual circumstances and financial goals when making decisions about your Social Security benefits.
Seek Expert Guidance
Navigating the complexities of Social Security benefits can be challenging. If you have questions or need assistance understanding your options at age 62, consulting with a financial advisor or Social Security expert is highly recommended. They can provide personalized guidance and help you make informed decisions about your benefits.
Remember, understanding your Social Security benefits and making informed choices can significantly impact your financial well-being in retirement.
Furthermore, at age 65, SSI benefits will automatically convert from disability to “aged” benefits if the recipient is not eligible for retirement benefits through the Social Security Administration. Once again, the benefit amount will not change.
Supplemental Security Income (SSI) payments do not automatically convert to Social Security Retirement benefits upon reaching retirement age, in contrast to Social Security Disability Insurance (SSDI) payments. Payroll taxes support SSDI and Retirement, whereas general federal taxes fund SSI. This has been covered in previous blog posts.
Sadly, the Social Security Administration (SSA) has the power to practically force you to apply for early retirement benefits at age 62 rather than waiting until you reach full retirement age. In addition, SSI payments do not automatically convert to retirement benefits. This could occur if you worked long enough to be eligible for a small retirement benefit but were not eligible for SSDI benefits.
You must apply for any additional cash benefits that are available, such as retirement benefits, in order to continue receiving SSI benefits.
The good news is that your total monthly benefit amount won’t drop because you can receive SSI and retirement benefits concurrently. You will still receive $735 per month if you are currently receiving the maximum SSI amount of $735 and start receiving $500 in early retirement benefits: $235 will be SSI benefits and $500 will be retirement benefits.
Full Retirement and Age 62 Benefit By Year Of Birth
| Year of Birth 1. | Full (normal) Retirement Age | Months between age 62 and full retirement age 2. | At Age 62 3. | |||
|---|---|---|---|---|---|---|
| A $1000 retirement benefit would be reduced to | The retirement benefit is reduced by 4. | A $500 spouses benefit would be reduced to | The spouses benefit is reduced by 5. | |||
| 1943-1954 | 66 | 48 | $750 | 25.00% | $350 | 30.00% |
| 1955 | 66 and 2 months | 50 | $741 | 25.83% | $345 | 30.83% |
| 1956 | 66 and 4 months | 52 | $733 | 26.67% | $341 | 31.67% |
| 1957 | 66 and 6 months | 54 | $725 | 27.50% | $337 | 32.50% |
| 1958 | 66 and 8 months | 56 | $716 | 28.33% | $333 | 33.33% |
| 1959 | 66 and 10 months | 58 | $708 | 29.17% | $329 | 34.17% |
| 1960 and later | 67 | 60 | $700 | 30.00% | $325 | 35.00% |
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Social Security Disability vs. Retirement at Age 62: What’s Better?
FAQ
At what age does SSI convert to regular Social Security?
How much money can you make if you take SSI at 62?
Is it a good idea to take SSI at 62?
How much does SSI increase each year after 62?
Will SSI change if I turn 62?
The earliest age you can receive retirement benefits is age 62, but these are not full retirement benefits. SSI benefits will not convert to Social Security retirement benefits when a person reaches early retirement age if they aren’t eligible to receive retirement benefits. Will My SSI Change When I Turn 62 if I Qualify for Retirement Benefits?
What happens if I receive SSDI before 62?
Those receiving SSDI prior to age 62 will see their SSDI benefits automatically converted to retirement benefits, with no change in the monthly payment, upon reaching their full retirement age.
Will Social Security pay SSI If I’m 62?
So if you apply for SSI at age 62, the SSA will check to see if you’re eligible for SSDI or retirement benefits. If you are, Social Security will pay you those benefits first, and if you’re still eligible for SSI (because your Social Security payments are low), then the agency will approve SSI benefits as well, up to the maximum SSI amount.
What happens if you file for Social Security at 62?
By filing at 62, or any time before you reach full retirement age, you forfeit a portion of your monthly benefit. If you were born in 1962 or later, for instance, filing at 62 could reduce your monthly payment by as much as 30 percent. AARP’s Social Security Benefits Calculator can provide more details on how filing early reduces benefits.