Your Social Security retirement benefits begin once you reach full retirement age, which is between 66 and 67 years of age.
However, many people start collecting Social Security retirement at age 62 (called early retirement) because health problems force them to stop working. If that is why you took early retirement, filing for Social Security Disability Insurance can still benefit you, but timing matters.
Early Retirement Reduces Your Benefit
Starting Social Security retirement before full retirement age causes a permanent reduction in your monthly benefit, up to 30%. That reduction normally lasts for life, but getting approved for SSDI can change that.
SSDI Pays at a Higher Rate Than Early Retirement
SSDI is generally paid at your full retirement amount, which is more than the benefits you can receive with early retirement. When SSDI is approved, your monthly benefit increases.
There is No Risk to Your Retirement Benefit if You File for SSDI
Filing for SSDI does not reduce your retirement benefit or put it at risk. If SSDI is denied, you simply continue receiving your early retirement benefit. Nothing is taken away.
You Cannot Collect Early Retirement and SSDI at the Same Time
If SSDI is approved, Social Security switches you from early retirement to SSDI. You can receive one monthly benefit, but not both.
How SSDI Timing Works
SSDI has a required five-month waiting period from the date Social Security decides your disability began. No disability benefits are paid during those first five months. Social Security can also only pay up to twelve months of retroactive SSDI benefits before the date you file your application.
The Practical Rule
If you are collecting early retirement because your health forced you to stop working, it is usually best to file for SSDI as soon as possible. Waiting until you are close to full retirement age can cause you to lose the opportunity entirely.
The Bottom Line
- There is no risk to filing for SSDI when you are collecting early retirement from Social Security.
- If approved for SSDI, your monthly benefit increases.
- If SSDI is denied, your retirement benefit stays the same.
- SSDI must be payable before full retirement age or it cannot be paid at all.
If you already started early retirement due to health problems, acting sooner rather than later can make a lasting difference in your monthly benefit for the rest of your life.