I’m 66 and on disability after a car crash — now Social Security is forcing me into retirement benefits. Will my payments go down?

Linda’s life changed in an instant. Driving home from work one night 10 years ago, she was hit by a drunk driver, leaving her with a traumatic brain injury that made it impossible to work. Since then, she’s been collecting Social Security Disability Insurance (SSDI).

Now, as she approaches her full retirement age (FRA), she’s learned that her SSDI will automatically convert to Social Security retirement benefits — and she’s worried that the amount of her monthly check will decrease.

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Although this is a hypothetical example, Linda’s story isn’t uncommon. About 8 million (1) workers with disabilities and dependents receive SSDI, and about 460,000 of these recipients (2) were in their mid-to-late 60s — meaning many are approaching the age when their benefits will automatically convert to retirement benefits.

The good news for those worried about their benefit amount declining is that, for most people, it won’t. The transition is automatic, so beneficiaries generally won’t have to reapply.

How SSDI works

SSDI is a federal insurance program that provides monthly payments and Medicare benefits to workers who become disabled before they reach retirement age. To be eligible, you must have a disability as defined by the Social Security Administration (SSA) and have worked for at least five of the past 10 years (in most cases; younger workers may qualify with fewer credits depending on their age).

Generally, you’re considered disabled by the SSA if your disability renders you unable to engage in substantial gainful activity and is expected to last at least one year or result in death.

SSDI payments are based on your work history (you can get an estimate (3) on the SSA website). If eligible, you’ll be automatically enrolled in Medicare after a 24-month waiting period from when you become entitled to SSDI benefits, unless you have certain medical conditions, in which case you may qualify sooner.

Once you’re approved for SSDI, there’s an automatic “disability freeze” (4) on your earnings record, which means that years where you don’t earn money as a result of your disability won’t count toward your future retirement benefit calculation (helping prevent your benefit from being reduced due to low or zero earnings years).

Read More: Almost 50 with no retirement savings? Here’s why you shouldn’t panic

How retirement benefits work

Social Security retirement benefits are also calculated based on your work income, but eligibility is based on age, and the size of your benefit is based on when you choose to begin receiving benefits.

You receive your full benefit if you begin taking benefits at your full retirement age (FRA), which falls between 66 and 67, depending on your birth year. If you take your benefit earlier (as early as age 62), your monthly check will be reduced to account for the longer time you’ll receive it.

For instance, if you choose to start receiving your retirement benefit at age 62, you’ll generally receive about 70% of your full benefit (for those with an FRA of 67) — permanently. Conversely, if you wait until after your FRA, your benefit amount will increase by up to 8% per year in delayed retirement credits, up until age 70.

You can’t legally be paid SSDI and Social Security retirement benefits at the same time. However, there is a situation that occasionally occurs that leads some people to mistakenly believe they’re being paid both (5). The same goes for delayed retirement credits — because SSDI pays you the full amount before you are 70, you are not eligible.

This happens when you file for early retirement and then get approved for SSDI, in which case you’d get a “top-up” to make up the difference — bringing your total benefit up to your full disability benefit amount — creating the perception of receiving both.

What happens when you reach FRA?

When you start getting SSDI benefits, you receive the full amount (based on your work history), so it’s usually best not to take early retirement with a reduced benefit. When you reach your FRA, your SSDI benefit automatically converts to a Social Security retirement benefit, and the amount generally stays the same.

An exception to this is if your SSDI is reduced by another payment, such as workers’ compensation or certain public disability benefits. In this instance, it may make sense to switch to Social Security retirement benefits sooner — since retirement benefits are not subject to these offsets, your monthly payment could increase.

That’s not the case for Linda. She receives no other payments, so when she reaches her FRA for Social Security retirement benefits, her monthly check will remain the same. However, the SSA will automatically reclassify her benefit from SSDI to retirement benefits.

She doesn’t have to do anything (it’s automatic), but she should review the information in the letter she receives from the SSA to ensure everything is correct. Her monthly benefit amount will remain the same because, at full retirement age, both payments are calculated from the same earnings record and represent her full benefit amount — so she can rest easy.

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Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

Social Security Administration (1),(2),(3); AARP (4); Disability Secrets (5)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.