Disability Lawyer

Early Retirement vs. Disability: What happens to my Disability Claim if I file for Early Retirement through Social Security?

Social Security has many different programs.  Typically when an applicant is filing for Disability through Social Security, the programs are Disability Insurance Benefits (based on your work history) and Supplemental Security Income (need base programs, looks at household income and assets).  Another program that an applicant may file for before or after an application for Disability through Social Security is Early Retirement. Early Retirement is a retirement program provided through Social Security that allows individuals to collect benefits early.  An applicant for Early Retirement may file an application right before the applicant’s 62 birthday.  Once an applicant turns 62 years old, the applicant may elect to collect from their retirement fund. Because the applicant is filing early there is a penalty on the amount an applicant would receive each month.  The applicant’s Full Retirement account through Social Security would be reduced for every additional month  that an applicant collects under the program of Early Retirement.  If an applicant files later than 62, but earlier than their Full Retirement Age, the amount would not be reduced as much due to the number of months. If an applicant has a claim filed for Disability Insurance Benefits, an applicant may also file for Early Retirement.  Disability Insurance Benefits is a program that basically takes a way the penalties that Early Retirement causes.  Disability Insurance Benefits is a program that allows you to receive your Full Retirement account because the applicant stopped working due to a disability versus because the applicant wanted to stop working. Basically, an applicant may receive their Early Retirement amount every month, while their Disability Insurance Benefits claim is pending with Social Security. For example:  Ernest was in a car accident on his 62nd birthday and now due to the injuries, Ernest is unable to work and has no additional income coming in.  Ernest may file applications with Social Security for both Early Retirement Benefits and for Disability Insurance Benefits.  Ernest was approved for his Early Retirement Benefits and his payments of $1000.00 start the next month.  One year later, Ernest was approved for his Disability Insurance Benefits, which is $1500.00.  As a result, Ernest will receive an additional $500 for seven month (12 months minus the five month waiting period) and his monthly amount will now be $1500.00 per month. As a result, an applicant may file for both Early Retirement and Disability Insurance Benefits.  But if an applicant does file for Early Retirement and Disability Insurance Benefits, the Disability Insurance Benefit amount is reduced by the amount that the applicant receives from Early Retirement.