SSDI to SSA "Early Retirement"

[somarco]

New prospect, age 60, on SSDI + Medicare. Someone told her that at age 62 her SSDI will change to age 62 "early retirement" and she will lose her Medicare coverage.

I have never encountered this at all and have a number of clients who rode the SSDI + Medicare bus all the way to age 65.

A web search turns up nothing to match what she has been told. Perhaps I am using the wrong search terms. This just sounds nutty.

 

[Fisher]

'Someone said'...

Just stop right there.

 

[rmhaire]

Someone told her that at age 62 her SSDI will change to age 62 "early retirement" and she will lose her Medicare coverage.

Total horse poopie.

SSDI automatically converts to retirement at age 65. Not 62. She doesn't have to do a thing.
And absolutely no change to her Medicare.

The only problem she may have is that her monthly benefit may go up. Depends on her work history. Not a bad problem to have.

 

[somarco]

Found the answer after posting . . .


What happens to SSDI when you turn 62?
Your disability benefits automatically convert to retirement benefits, but the amount remains the same. (See bottom of page 1 continuing to page 2 in the SSA brochure).



The Social Security Administration periodically reviews eligibility for SSDI. If your condition improves or you have a successful kidney transplant, you can lose your SSDI benefits and Medicare (unless you also have another disability or chronic health condition that qualifies you for SSDI).

However, if you no longer qualify for SSDI because your condition improves or you successfully complete a trial work period, you may still be able to keep your Medicare benefits.
https://cahealthadvocates.org/disab... you no longer,to keep your Medicare benefits.

 

[rmhaire]

What happens to SSDI when you turn 62?

I've still got to go with what I've experienced. Not what the book says.

Age 62 is early retirement age. Normal retirement age is 65 for a baby boomer.

My wife qualified for SSDI when she was 55. She drew it all the way up to turning 65. Absolutely nothing happened when she turned 62. And when she turned 65 it automatically converted.

 

[axeman462]

Found the answer after posting . . .


What happens to SSDI when you turn 62?
Your disability benefits automatically convert to retirement benefits, but the amount remains the same. (See bottom of page 1 continuing to page 2 in the SSA brochure).



The Social Security Administration periodically reviews eligibility for SSDI. If your condition improves or you have a successful kidney transplant, you can lose your SSDI benefits and Medicare (unless you also have another disability or chronic health condition that qualifies you for SSDI).

However, if you no longer qualify for SSDI because your condition improves or you successfully complete a trial work period, you may still be able to keep your Medicare benefits.
https://cahealthadvocates.org/disabilities/medicare-for-people-with-disabilities-an-overview/#:~:text=Ongoing Eligibility for Medicare and SSDI&text=However, if you no longer,to keep your Medicare benefits.

Although that is how I understand it to work, I have never actually seen it happen that way in practice.

 

[LostDollar]

Some comments from an attorney on this topic which might be helpful.

What Happens to My Disability Benefits When I Reach Age 62? - Jeffrey Freedman Attorneys PLLC

If you do qualify for retirement benefits, and currently receive SSI payments, you will be required to apply for early retirement when you turn 62.

www.jeffreyfreedman.com

If you are receiving disability benefits through Social Security, what happens when you turn 62 depends primarily on which kind of disability benefits you receive. Here, we will explore what happens under the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs.

 

[rmhaire]

Some comments from an attorney on this topic which might be helpful.

What Happens to My Disability Benefits When I Reach Age 62? - Jeffrey Freedman Attorneys PLLC

If you do qualify for retirement benefits, and currently receive SSI payments, you will be required to apply for early retirement when you turn 62.

www.jeffreyfreedman.com

Good article. But I didn't see a reference to older Boomers. Born before 1960.

Full retirement age for them would be 65 and not 67.

Also these early Boomers on SSDI don't have to do anything at 62 and their conversion to retirement benefits at 65 is automatic.

 

[adjusterjack]

Good article. But I didn't see a reference to older Boomers. Born before 1960.

Full retirement age for them would be 65 and not 67.

Also these early Boomers on SSDI don't have to do anything at 62 and their conversion to retirement benefits at 65 is automatic.

My sister, born in 1957, was on SSDI until her Full Retirement Age (66 and 6 months) last year. SSDI automatically converted to Retirement and went up several hundred per month.

65 is the FRA for those born 1943-1954.
For 1954 to 1959 it's 66 plus a different number of months for each birth year.
1960 and later FRA is 67.

Benefits Planner: Retirement | Retirement Age Calculator | SSA

Use the Social Security full retirement age calculator to find out when you are eligible for unreduced retirement benefits based on your birth year.

www.ssa.gov

 

[LostDollar]

Good article. But I didn't see a reference to older Boomers. Born before 1960.

Full retirement age for them would be 65 and not 67.

He addresses full retirement age for all here (bolding is mine):

Under ordinary circumstances, you are eligible to apply for early retirement when you turn 62. At that age, however, you have not reached full retirement age, and full retirement age depends on your year of birth. For example, for anyone born in 1960 or later, full retirement age is 67

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Also these early Boomers on SSDI don't have to do anything at 62 and their conversion to retirement benefits at 65 is automatic.

And that concern is addressed here--again for all, not just boomers (again bolding is mine):

Full retirement age is the point at which you qualify for 100% of the benefit that Social Security calculates from your lifetime earnings. Therefore, if you opt for early retirement, your monthly benefit amount will be reduced for the rest of your life. The amount your monthly benefits will be reduced by depends on the number of months that remain until you reach full retirement age.


If you are collecting SSDI benefits when you turn 62, and you decide you want to retire, you will have to actively apply for early retirement through Social Security. Then you will begin collecting retirement benefits at the permanently reduced rate. ,If on the other hand, you wait until you reach full retirement age, your SSDI benefits automatically convert to retirement benefits, so there is nothing additional for you to do, and your monthly benefit amount will stay the same.

Here is another article from an attorney which uses slightly different language to express the same concepts. (and if boomers are the 1943-1954 age, then he uses boomers in his "for example", but again the concept applies to all.

Retirement Facts - What Happens to My SSI When I Turn 62?

Your disability benefits may convert to retirement benefits when you reach early retirement at age 62, but it depends on several factors.

www.jonathanpena.com