Wednesday, September 6, 2017

WHAT HAPPENS TO MY DISABILITY BENEFIT WHEN I REACH FULL RETIREMENT AGE?

When you reach full retirement age, your disability benefit will automatically convert to a retirement benefit.  The amount will not change.

Let's use Jasmine as an example.  She started getting a disability benefit when she was 48 years old.  At 48, she was given the same amount as her retirement would benefit would have been--she just began receiving it early.  When Jasmine reaches age 67 (her full retirement age), Social Security will continue her benefit checks in the same amount.  However, they will now be called "retirement benefits" and not "disability benefits."

What difference will Jasmine notice?  Probably none.  The check she receives each month will be paid from the Social Security Retirement Trust Fund, not from the Social Security Disability Trust Fund.  Since it will be the same amount, Jasmine probably won't notice any difference at all.

Why doesn't your check increase when you reach full retirement age?

Because you have been receiving the same amount as the "full retirement benefit" all along.  You just got is earlier because you were disabled prior to full retirement age.

So, does my monthly benefit never increase?

The benefit does not increase except for (a) small cost of living adjustments (COLAs) or (b) changes that Congress may make in the laws or regulations in the future.  

 

 

No comments:

Post a Comment