I meet with many individuals that are between the age of 62-65, and do not realize that they are able to pursue Social Security Early Retirement benefits and Social Security Disability Insurance benefits at the same time. These individuals normally assume that these programs are mutually exclusive, and that a decision has to be made to pursue one program or the other. In fact, the Social Security Administration will let individuals apply for both programs simultaneously.

There are some important reasons why individuals that are eligible for early retirement should consider applying for both programs; however, it is also important to know that there can be a negative impact on your Social Security payments if you are ultimately found not disabled.

What Happens when I Accept Early Retirement from Social Security?

When you elect to receive your Social Security Retirement at age 62 you are receiving a 25% reduction in your retirement benefit if you were born between 1943 and 1954. [See Social Security Administration’s Retirement Benefits by Year of Birth Page for reduction based on other years of birth.] This is a permanent reduction if you elect to start retirement at age 62. This means that if your full retirement benefit at 66 would be $1,000 per month, you will only receive $750 per month (for the rest of your life) if you retire early.

How Does Disability Impact My Early Retirement?

The exception to this lifelong reduction is if the Social Security Administration determines you are disabled at some point before you reach full retirement age. If you are found to be eligible for Social Security Disability and your payments start retroactively prior to the date you actually began receiving reduced retirement, your early retirement application is effectively withdrawn. The Social Security Administration will pay you the difference between your reduced retirement and your full Social Security benefit for each month that you have already been paid, and you will receive your full payment for each month going forward.

Example

For example, let us assume that an individual named John Smith was born on January 1, 1948. He turned 62 on January 1, 2010. John stopped working because of his health condition on May 2, 2009. Since he was unable to work, he applied for early retirement on January 1, 2010 when he turned 62. John’s full retirement rate is $1,000, but since he elected early retirement at 62, he is only entitled to $750 per month in retirement benefits. [If John is found disabled, he receives payment at his full Social Security rate of $1,000 per month]

Now since John has the necessary quarters of coverage for retirement, he is eligible to begin retirement benefits immediately when he turned 62. John is informed that he can also apply for disability since he stopped working because of a medical impairment that prevented him from continuing to perform work. John applies for Social Security Disability Insurance and alleges that his disability began on May 2, 2009.

The Social Security Administration determines on June 6, 2010 that John is disabled, and that his disability began on May 2, 2009. John is entitled to start disability payments in November 2009. He has already received early retirement benefits from January 2010 until May 2010. Since he was found disabled, he is entitled to his full Social Security rate of $1,000 per month. The Social Security Administration will pay John $1,000 for November and December 2009, and will pay him $250 per month from January 2010 until May 2010 (since he already received $750 per month from early retirement). His early retirement benefits will stop effective June 2010, and John will receive only his disability check of $1,000 per month going forward.

Since John was found entitled to Disability benefits prior to the date that his early retirement began, there is no reduction in his Disability payment. Even when John turns 66, he will continue to receive his full Social Security rate as long as he remained disabled until he turned 66. The benefit to John is that he received payments from January 2010 until May 2010 while he was waiting for his disability application to be decided. This would be important to John, because otherwise he would have no income during that period.

Warning

It is important to remember that if the individual in the example above had not been approved for Social Security Disability Insurance, he would have received the reduced retirement rate for the rest of his life. Individuals that are eligible to begin Early Retirement and apply for Disability should always remember that there is no guarantee that they will be approved for Disability benefits. If you do not want to risk receiving reduced retirement benefits for the rest of your life, then you should simply apply for Disability benefits if you are between the age of 62-65.

The second warning is that the Social Security Administration could determine that your disability began at a later date. If John had not been found disabled until May 2, 2010, his disability benefits would not begin until November 2010. Since he began retirement payments in January 2010, there would have been 10 months that he only received early retirement benefits. John would begin receiving disability benefits in November 2010, but his disability payment amount would be reduced by the number of months he already received early retirement. When John turns 66, he would have a permanent 10-month reduction on his retirement benefits.

In other words, when he turned 66, the Social Security Administration would pay John at a rate as if he had retired at age 65 and 2 months. For an individual born in 1948, starting benefits at age 65 and 2 months would result in a permanent reduction of 5.6%. John’s disability benefit and his retirement rate at age 66 would then be reduced to $944 per month. [Please see the Social Security Administration’s Retirement Benefits by Year of Birth Page for information about early retirement reduction rates based on year that you were born. See POMS RS 00615.110 for more information about benefit reductions when entitled to both Social Security Retirement and Social Security Disability Insurance Benefits.]

What to Remember

It is important to understand what your options are if you are eligible to apply for both disability and early retirement. Prior to pursuing both retirement and disability benefits, it is normally a good idea to speak with someone that has knowledge of the interaction between the two programs. If you decide to proceed without the assistance of an attorney, ask the Social Security Administration to run through scenarios with you of what will happen if you are found disabled on the date that you stopped working, but also if you are not found disabled until a later date, or if you are never found disabled.

It is also normally a good idea to consult with a financial planner when deciding how to proceed with early retirement benefits. A financial planner will be able to review the positive and negative consequences of receiving retirement payments at reduced rate.

This article was written by Steven Butler. Steven is a partner atLinarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.

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Episode 6 of Social Security Disability Law Weekly Podcast includes discussion of: importance of local attorneys in Social Security Disability Claims; use of an iPad in Administrative Law Judge Hearings; don’t blame the messenger when unpleasant information is communicated about your disability or SSI claim; Social Security Denials Remain High in Delaware; impact of disability on Social Security Retirement benefits; and concept of medical record lag in Social Security claims. Download Episode 6 or press play below to listen in your browser.

Show Notes: Social Security Disability Law Weekly Podcast Episode 6

• Subscribe in iTunes (subscribe in iTunes)

This Week’s Topics:

• Off Topic
  • Support local attorneys – discussion of advantages of having a local attorney
  • Is my attorney using an iPad?
• Issues during my week in practice
  • Don’t Blame the Messenger!
    • Finding out that you don’t qualify for Social Security disability can be difficult, but it is important to remember that the person communicating the message to you isn’t the one making the rules.
• Social Security News (Discussion of Topics Reported in the News and Blogs this Week)
  • Social Security Denials Remain High by Mike Chalmers of the Delaware News Journal
    • Further discussion of the relatively high denial rate for Social Security disability claims by Delaware Administrative Law Judges
  • Social Security Disability Benefits at Retirement Age by Scott Lewis of Indiana Social Security Disability Lawyer Blog
    • Description of what happens when you reach retirement age and are on disability
    • Reminder to consider loss of benefit when on Early Retirement instead of disability
  • The Medical Records Time Lag by Gordon Gates of the Social Security Disability Lawyer Blog
    • More complete medical records can help you win your claim

Closing Credits:

• Contact Steve Butler to Discuss Social Security Disability Law Weekly
  • DelawareDisability.com Contact Form
  • Email: Steve@SSAlaw.us
  • Twitter: @DisabilityGuy
  • Facebook: http://facebook.com/SSALaw

I hope you enjoyed the sixth episode. Please feel free to give me any feedback for improving future episodes. If you enjoy the podcast, you can subscribe in iTunes.

Social Security Disability Law Weekly is a podcast devoted to issues in Social Security Disability Law. Discussion is focused on Social Security Disability Insurance and Supplemental Security Income payments. Social Security Disability Law Weekly is hosted by Steven Butler of Linarducci & Butler, PA.

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When you apply for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) payments from the Social Security Administration, it is important to realize that different standards are used to determine your disability based on your age. As an adult, it is hardest to qualify for benefits if you are between the ages of 18-49. The closer you are to full retirement age, the easier it is to qualify for benefits.

Below is a brief overview of what you must establish in order to prove that you meet the medical requirements of disability. These are just general guidelines, so it is always important that you speak to an attorney about your eligibility even if it appears that you will not qualify based on the information below.

Disability Benefits for Individuals Ages 18-49

• Generally to be found disabled:*
  
  • You must have a solid work history (have worked in 5 of the last 10 years before becoming disabled and earned sufficient lifetime work credits); and
    
  • You must have less than $1000/month (in 2010) of earned income; and
    
  • You must have a medical condition (or a combination of medical conditions) that prevents you from performing any of the work you have done in the last 15 years; and
    
  • You must be unable to perform any full-time work (regardless of pay or experience).
    

Disability Benefits for Individuals Ages 50-54

• Generally to be found disabled:*
  
  • You must have a solid work history (generally have worked in 5 of the last 10 years before becoming disabled and at least 7-8 years during your lifetime); and
    
  • You must have less than $1000/month (in 2010) of earned income; and
    
  • You must have a medical condition (or a combination of medical conditions) that prevents you from performing any of the work you have done in the last 15 years; and
    
  • You must be limited to lifting no more than 10 pounds of weight; and
    
  • You must be unable to stand for more than 15 minutes every hour in an 8 hour workday; and
    
  • There must be no sit-down jobs that exist in the economy that use skills that you have acquired from jobs performed in the last 15 years that you still have the ability to perform today.
    

Disability Benefits for Individuals Age 55-64

• Generally to be found disabled:^*
  
  • You must have a solid work history (generally have worked in 5 of the last 10 years before becoming disabled and at least 8.5-10 years during your lifetime); and
    
  • You must have less than $1000/month (in 2010) of earned income; and
    
  • You must have a medical condition (or a combination of medical conditions) that prevents you from performing any of the work you have done in the last 15 years; and
    
  • You must be limited to lifting no more than 20 pounds of weight; and
    
  • There must be no jobs that exist in the economy that use skills that you have acquired from jobs performed in the last 15 years that you still have the ability to perform today.
    

Documentation Required to Proof Disability

• You must have a documented medical impairment; and
  
• You must be receiving ongoing care for your medical condition; and
  
• You must comply with your doctor’s orders (take medication, attend scheduled appointments); and
  
• Your doctor should support your application for disability.
  

Advantages of Being Found Disabled as Opposed to Early Social Security Retirement

• Your Social Security Retirement benefits are not reduced (if you begin retirement early your benefits are reduced for the rest or your life); and
  
• You are eligible to begin Medicare coverage after 24 months of Social Security disability payments; and
  
• You protect your earnings record so that your retirement rate does not decrease.
  

When to Consider Social Security Disability

• You are injured in any way that prevents you from performing work;
  
• You are diagnosed with a medical condition that prevents you from performing work or is terminal;
  
• You retire from work early because you are unable to continue to perform your work
  

What Happens if You do Not have Sufficient Work Credits to Qualify?

• If you have limited income and resources, you may qualify for Supplemental Security Income Payments (SSI);
  
• SSI has the same medical requirements as SSDI, but you also have to establish financial need for eligibility;
  
• Social Security also considers income of spouse when determining eligibility.
  

This is just general information to help individuals that are considering applying for Social Security disability benefits. Please contact our office, the Social Security Administration, or another attorney if your situation matches the criteria discussed above.

^* The rules are slightly different for individuals that are illiterate or unable to communicate in English.

This article was written by Steven Butler. Steven is a partner at Linarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims to residents of Delaware, Maryland, New Jersey and Pennsylvania. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.

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From my experience in Social Security Disability, I have learned that the Unions that represented employees at each of these plants had done a great job of protecting workers. Despite serious medical limitations, many employees were able to maintain their employment thanks to accommodations that were made for them. With the disappearance of the large manufacturing sector in Northern Delaware, is unlikely that many of these individuals will be able to obtain competitive work despite the skills they have acquired over their lifetime and their long work history. Even if many of these workers find alternative employment, without the protection of the Union, it will be more difficult for those with medical limitations to maintain work.

It is important that individuals age 50 and over consider Social Security Disability Insurance Benefits if they have become displaced because of a plant closing. If you are over the age of 50, the Social Security Administration Disability Regulations require that greater attention be paid to the work that you performed in the past. It is much more likely that an individual over the age of 50 will be approved for Social Security Disability Insurance if they have performed skilled physically demanding work in the past. The main consideration will be on whether you can perform the same type of work you did in the past. (If you are under 50 you are only disabled if you are unable to perform all full-time work).

Normally, individuals that have performed work on an automobile assembly line or at a refinery have a much better chance of being approved for disability benefits than individuals that have performed less physically demanding work. If you are experiencing difficulty finding work since you have become unexpectedly unemployed, it is important that you consider an application for disability benefits if you have a medical condition or conditions that limit your ability to perform work in any way.

My office is available for free consultations for individuals that have been displaced from manufacturing work and have been unable to obtain alternate employment because of physical or mental disabilities. It will be important that you are able to describe your physical and mental limitations, and that you can describe in simple terms how your condition limits your ability to sit, stand or lift. It is also important that you have regular medical treatment for your medical condition or conditions.

Social Security disability insurance is an entitlement program that you pay into when you are working and have taxes withheld from your paycheck. Unfortunately, many people that lose manufacturing jobs and are over the age of 50 do not recognize that they may qualify for these benefits. If you are considering collecting early retirement or you are unable to continue to work and are over the age of 50, I would strongly advise that you also determine if you qualify for Social Security Disability Insurance.

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This article was written by Steven Butler. Steven is a partner at Linarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims to residents of Delaware, Maryland, New Jersey and Pennsylvania. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.

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Social Security disability is an entitlement program. Money is withheld from your paycheck when you are working to support the Social Security Disability program. If you are age 50 or over and you have a strong work history (i.e. you have made more than $5,000 per year in five out of the last 10 years prior to your retirement, and you have worked at least 10 years in your lifetime), you probably are insured for Social Security Disability benefits. Social Security Disability is not a welfare program, and you can only qualify if you have actually paid into the system and you have a strong work history. Even if you are already receiving early retirement benefits from the Social Security Administration, you can still file an application for Social Security Disability. Social Security Disability pays you at your full retirement rate and not at a reduced rate such as early retirement.

If you are between the ages of 50 and 54, generally in order to qualify for Social Security disability, you must establish that your medical condition will prevent you from performing your past work, and at most you can only perform a sit-down job that does not require any of the skills that you have obtained from previous work. If you are age 55 to 64, again you must establish that you are unable to perform your past work, but even if you can perform a job that requires standing six hours a day, and lifting up to 20 pounds of weight, as long as none of your skills from your previous work would allow you to obtain alternate employment, you are most likely disabled.

Social Security Disability should be considered for any individual over the age of 50 that decides (or has already decided) to stop work because of difficulty performing the job duties. Individuals that are engaged in physical demanding work, often experience aches and pains from years of physical exertion. Commonly factory workers, construction workers, pipefitters, welders, and other typical union employees experience various injuries over their lifetime that affect their ability to perform work. Although you may not qualify for benefits from your employers (or union) because of the wear and tear on your body, if you have a medical diagnosis that would limit your ability to perform the work, you may qualify for Social Security Disability.

Even if you have already retired, it is important to know your options. Our office is available to help anyone that has already retired or is considering their options. If you are between the ages of 50 and 64 and you have had to stop your work because of physical limitations, please contact our office for a free initial consultation. We will review the Social Security Disability program with you and help you determine if you qualify for benefits. These are benefits you have paid taxes into and it is important that you know your rights and your eligibility. If you qualify for Disability, you also become eligible for Medicare after being on the Social Security Disability Program for two years. If we determine that you qualify, our office can assist you with the application process and the completion of any forms. For further details please contact our office immediately.

This article was written by Steven Butler. Steven is a partner at Linarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims to residents of Delaware, Maryland, New Jersey and Pennsylvania. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.

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