Over the years, the Social Security Disability program has assisted a large number of Americans in making ends meet when they were unable to do so on their own because of an illness, injury, or disability. Even though it can be challenging to be approved for benefits, for many people who would otherwise be left on their own, knowing that these benefits exist and are accessible when needed has changed everything.
Not being able to end a cherished career on their own terms can be devastating for those who have worked at a career for a long time but find themselves suddenly unable to work and collecting disability. Furthermore, you most likely deserve a pension or retirement pay if you have worked for a company for a long time. Many people, however, may become anxious about this because they may wonder if receiving a pension or another payment will prevent them from receiving the SSDI benefits they so desperately need. Is it possible for someone to receive SSDI benefits and a pension at the same time, or do they conflict and have an impact on one another? This is a commonly asked question.
The good news is that you usually don’t need to be concerned about this. Social Security Disability Insurance (SSDI) is not a need-based system. Alternatively put, it is not a payment given out in response to need for money. It depends on your ability to support yourself financially through employment. Your financial situation is not taken into consideration at all. In the event that you were rendered disabled but were still able to receive a retirement pension, this should have no bearing on your eligibility for disability benefits or the amount you receive each month.
There are, however, a few exceptions to this rule. It’s hard to give an exhaustive list of all the different kinds of pensions that could impact your SSDI benefits, but the important thing to know is whether or not your pension deducts Social Security tax. If your pension is deducted for Social Security tax, you are contributing to the system and don’t need to worry. On the other hand, your SSA payments may be lowered or stopped if these taxes are not deducted. These pension plans include several long-term disability and disability pensions, as well as retirement pensions from the civil service.
Supplemental Security Income (SSI), the other form of disability, does not always follow the same pattern. Those who struggle financially in addition to having a long-term disability are eligible for this kind of assistance. In addition to demonstrating the existence of a physical or mental illness, you must demonstrate that you and your family have very little in the way of assets or income. Given that a pension would be considered an asset, this could have an impact on your ability to continue receiving SSI benefits or the amount that you receive. Since SSI is a needs-based program, individuals who are in need receive priority when it comes to funding.
Please don’t hesitate to contact us right away if you have any more questions about whether receiving a pension could impact your eligibility for SSDI or SSI benefits. Our knowledgeable disability advocates are available to help, and they can even begin guiding you through the application process for disability benefits. We hope to hear from you soon!.
Yes, you can collect Social Security Disability Insurance (SSDI) and Social Security retirement benefits at the same time under certain circumstances. When you reach your full retirement age, your SSDI benefits will automatically convert to retirement benefits without a change in the amount.
Here’s what you need to know about receiving both SSDI and retirement benefits:
Understanding Social Security Disability Insurance (SSDI)
SSDI is a federal program that provides financial assistance to individuals who are unable to work due to a disability. To be eligible for SSDI, you must have worked long enough and paid Social Security taxes.
SSDI and Your Retirement Benefits
The amount of SSDI benefits you receive is generally equal to the amount you are eligible to collect in retirement benefits at your full retirement age. When you reach full retirement age, your SSDI benefits will automatically convert to retirement benefits without a change in the amount.
Retirement Benefit Options
When your benefit changes from SSDI to retirement benefits, your dependents may file for benefits based on your work record with Social Security retirement benefits, which they may not do with SSDI benefits.
You can also choose to delay taking your retirement benefit and accrue delayed retirement credits, which could increase your benefit each year you wait. You can then hold off on refiling for your benefits until as late as age 70. Both of these options help make it possible for you or your household to potentially increase your monthly benefit amount in the future.
Survivor Benefits
The most common survivor benefit – the benefit for a surviving spouse – typically remains the same whether you’re collecting SSDI or retirement benefits. However, if you leave behind a spouse that’s still caring for a dependent child, whether you are receiving SSDI or retirement benefits can make a difference.
The SSA calculates a family maximum benefit (FMB) that limits the amount your dependents can collect. A separate FMB is calculated for SSDI recipients.
The FMB for SSDI beneficiaries is no less than the amount you are entitled to collect at full retirement age and no more than 150% of that amount. This means your family could be eligible for less survivor benefits based on your SSDI benefits than what they would be eligible for if you were collecting retirement benefits.
Understanding Social Security
The systems in place for Social Security disability and retirement benefits can be a little confusing. It’s important to understand what to expect from your Social Security benefits so you can plan ahead for your own retirement and also potentially help protect your loved ones.
Additional Resources:
- Social Security Administration (SSA): https://www.ssa.gov/
- Western & Southern Financial Group: https://www.westernsouthern.com/retirement/can-i-receive-disability-and-retirement-benefits-at-the-same-time
- FBR Law: https://www.fbrlaw.com/blog/disability/what-happens-to-my-pension-if-i-go-on-disability-in-new-york/
Here are some additional things to keep in mind:
- If you are receiving private disability income insurance, that doesn’t necessarily mean you’re also eligible for SSDI. Disability payments received through private insurance typically do not affect your Social Security retirement benefits.
- The amount of money you receive in disability benefits is calculated using two different dollar amounts: your average indexed monthly earnings, which averages your lifetime income, and your primary insurance amount, which is the amount of money you are entitled to receive as retirement benefits at your full retirement age (between ages 65 and 67, depending on the year you were born, according to the SSA).
- If you are eligible for private disability income insurance, that doesn’t necessarily mean you’re also eligible for SSDI. Disability payments received through private insurance typically do not affect your Social Security retirement benefits.
- The amount of money you receive in disability benefits is calculated using two different dollar amounts: your average indexed monthly earnings, which averages your lifetime income, and your primary insurance amount, which is the amount of money you are entitled to receive as retirement benefits at your full retirement age (between ages 65 and 67, depending on the year you were born, according to the SSA).
The good news is that you usually don’t need to be concerned about this. Social Security Disability Insurance (SSDI) is not a need-based system. Alternatively put, it is not a payment given out in response to need for money. It depends on your ability to support yourself financially through employment. Your financial situation is not taken into consideration at all. In the event that you were rendered disabled but were still able to receive a retirement pension, this should have no bearing on your eligibility for disability benefits or the amount you receive each month.
There are, however, a few exceptions to this rule. It’s hard to give an exhaustive list of all the different kinds of pensions that could impact your SSDI benefits, but the important thing to know is whether or not your pension deducts Social Security tax. If your pension is deducted for Social Security tax, you are contributing to the system and don’t need to worry. On the other hand, your SSA payments may be lowered or stopped if these taxes are not deducted. These pension plans include several long-term disability and disability pensions, as well as retirement pensions from the civil service.
Supplemental Security Income (SSI), the other form of disability, does not always follow the same pattern. Those who struggle financially in addition to having a long-term disability are eligible for this kind of assistance. In addition to demonstrating the existence of a physical or mental illness, you must demonstrate that you and your family have very little in the way of assets or income. Given that a pension would be considered an asset, this could have an impact on your ability to continue receiving SSI benefits or the amount that you receive. Since SSI is a needs-based program, individuals who are in need receive priority when it comes to funding.
Please don’t hesitate to contact us right away if you have any more questions about whether receiving a pension could impact your eligibility for SSDI or SSI benefits. Our knowledgeable disability advocates are available to help, and they can even begin guiding you through the application process for disability benefits. We hope to hear from you soon!.
Not being able to end a cherished career on their own terms can be devastating for those who have worked at a career for a long time but find themselves suddenly unable to work and collecting disability. Furthermore, you most likely deserve a pension or retirement pay if you have worked for a company for a long time. Many people, however, may become anxious about this because they may wonder if receiving a pension or another payment will prevent them from receiving the SSDI benefits they so desperately need. Is it possible for someone to receive SSDI benefits and a pension at the same time, or do they conflict and have an impact on one another? This is a commonly asked question.
When disability beneficiaries reach full retirement age, their Social Security disability benefits automatically convert to retirement benefits. A person cannot simultaneously receive retirement benefits and disability benefits on the same earnings record due to legal restrictions.
Can You Collect Social Security Retirement Benefits and Disability Benefits At The Same Time
FAQ
Does a pension affect Social Security disability?
Can I get retirement and disability at the same time?
Does disability affect retirement pay?
Can I collect my pension and Social Security at the same time?
Can I collect disability benefits and a pension at the same time?
Social Security rules allow you to collect disability benefits and a pension at the same time. However, the amount of your benefits may be calculated differently than if you became disabled before the age of retirement or you were not entitled to a pension for other reasons. Whether your benefits are reduced will depend on your work history.
Can I get Social Security disability and retirement benefits at the same time?
In general, you cannot get Social Security retirement benefits and Social Security disability benefits at the same time. Typically, disability benefits are for pre-retirement beneficiaries, and retirement benefits are for workers at least 62 years old. After full retirement age, you cannot file for Social Security disability benefits.
Does my pension affect my SSDI benefits?
If your pension comes from an employer who withheld Social Security taxes, it does not affect your SSDI benefits. Social Security rules allow you to collect disability benefits and a pension at the same time.
Does my pension change my Social Security disability benefits?
The short answer is, “yes.” It isn’t a common occurrence but it can happen. Whether or not your pension payment alters Social Security Disability benefits depends on the kind of pension you have and on the type of Social Security benefits you’re receiving.