Will My Disability Benefits Change When I Turn 65?

​When you receive Social Security Disability Insurance (SSDI), your benefits will not decrease when you turn 65. However, the Social Security Administration (SSA) will reclassify your payments as retirement benefits once you reach your full retirement age (FRA). Understanding this shift can help you prepare for the future and avoid unnecessary confusion.

Many people assume that 65 is the standard retirement age, but that changed decades ago. In 1983, Congress adjusted the Social Security system to extend its long-term sustainability, gradually increasing the FRA beyond 65. Today, the FRA varies between 66 and 67, depending on your birth year. For those born in 1943 or later, FRA is at least 66, and for younger individuals, it may be 67. If you are receiving SSDI, your benefits will convert to retirement benefits automatically when you reach FRA, which may not be at age 65.

Your Benefit Amount Stays the Same

Although your SSDI benefits transition to retirement benefits at FRA, the amount remains unchanged. SSDI is designed to provide the same monthly payment as your full retirement benefit, so when SSA switches your classification from disability to retirement, no reduction occurs. This conversion happens automatically, and you are not required to take any action.

One of the financial advantages of SSDI is that it pays full retirement benefits without the early retirement penalty. If you were to claim Social Security retirement benefits before FRA—such as at age 62, your monthly payment would be permanently reduced. SSDI recipients, however, receive their full benefit without a reduction, making it a more beneficial option for those who qualify.

Changes at Full Retirement Age

Once you reach your FRA, your benefits will be categorized as retirement benefits instead of disability benefits. While this shift does not affect your monthly payments, there are a few key administrative changes:

• No More Disability Reviews: When receiving SSDI, SSA regularly reviews your medical condition to determine if you still qualify as disabled. When your benefits switch to retirement benefits at FRA, no reviews are required.
• Medicare Coverage Remains: If you have been receiving SSDI for at least two years before turning 65, you are likely already enrolled in Medicare. Regardless of whether you were receiving SSDI or not, Medicare eligibility begins at 65. Your Medicare coverage will continue, but you may have additional options for supplemental plans or different Medicare coverage choices.
• Work Incentives End: SSDI includes work incentives, such as trial work periods that allow recipients to attempt working without losing benefits. Once your benefits convert to retirement, these incentives no longer apply because Social Security retirement benefits are not based on your ability to work.

Why Applying for SSDI Before FRA Can Be a Smart Decision

If you have a disabling condition and are nearing retirement age, applying for SSDI could be a better financial choice than filing for early retirement benefits. Claiming Social Security retirement benefits before reaching FRA results in a permanent reduction of up to 30%, depending on how early you file. By contrast, SSDI pays the full retirement benefit amount without reductions, ensuring a higher monthly payment.

Additionally, SSDI recipients gain access to Medicare earlier than those who take early retirement benefits. If approved, you can start receiving Medicare after two years of SSDI benefits, whereas those who claim early retirement benefits must wait until age 65 for Medicare eligibility. These financial and healthcare advantages make SSDI a preferable option for those who qualify.

What Happens If You Receive Supplemental Security Income (SSI)?

SSI operates differently from SSDI because it is a needs-based program for individuals with limited income and resources. When you turn 65, your eligibility for SSI may shift from the disability category to the aged category. However, the income and resource limits that determine eligibility remain in place.

If you receive both SSDI and SSI, your SSI payments may be adjusted once your SSDI converts to retirement benefits. SSI benefits are determined by financial need, so any change in other income, including SSDI reclassification, could impact the amount you receive.

Planning for the Transition

If you are currently on SSDI, you do not need to worry about losing benefits when you turn 65 or reach FRA. Your monthly payments will continue at the same amount, only under the classification of retirement benefits. Because SSDI provides full retirement benefits without penalties, you will not experience the reductions that come with early retirement claims.

If you are not yet receiving SSDI but have a disability that prevents you from working, you should consider applying before reaching retirement age. Doing so allows you to receive full retirement-level benefits without penalties, even if you are years away from FRA. This can make a significant difference in your financial security.

How Law Firm Can Help

Understanding Social Security rules can be complicated, but having knowledgeable guidance can make a significant difference in securing the benefits you need. If you have questions about eligibility, SSDI applications, or how your benefits may be affected by age, law firm is here to assist you. Our firm focuses on disability claims and works to help clients receive the Social Security benefits they deserve. Contact us today to learn more about how we can help with your case.