If you are about to reach age 62, then Social Security retirement benefits are available to you (at a reduced amount compared to full retirement age). You really don't have to do anything, except file an application to start receiving early retirement benefits. It will be automatically approved based on the fact that you are 62 years old. You should apply about 4 months before your 62nd birthday because it takes a while to process paperwork.
Now the question: If you file for early retirement benefits at 62, can you still file for disability benefits? Why would you want to?
Yes, you can file for Social Security disability insurance (SSDI) benefits any time before reaching your full retirement age (around 66 or 67 for most individuals). Why would you want to if you're already getting early retirement?
Because early retirement at age 62 gives you a reduced benefit, while Social Security disability gives you the full benefit. In short, disability benefits pay more than early retirement. In fact, if you take early retirement at 62, your benefit will be reduced by approximately 30 percent compared to your benefit at full retirement age. So, you get it early but you take a reduction. And the reduced benefit never goes up--even after reaching your full retirement age.
Let's use a simple example, using a fictitious person we will call "Jack.
Jack will turn 62 on October 13, 2019. He needs some income, so he files for Social Security retirement about 4 months prior to his birthday. His retirement check will start in October.
Jack begins to think about the fact that he is not really able to work. In fact, his doctor has told him several times that he couldn't do any full-time work. Jack decides to also file a Social Security disability claim.
Jack's disability claim is denied at first because Social Security does not find that his medical conditions meet their requirements for disability. Jack gets a lawyer and appeals his denial; however, the claim drags on for over a year in appeals.
In October, Jack begins receiving his early retirment check from Social Security (because he just turned 62). His reduced check is for $1,120 per month.
About a year later, however, Social Security approves Jack's disability claim. What happens now.
Social Security will retroactively pay Jack the higher amount for disability, dating back to the date he became disabled (not the date the claim settled). So, let's say Jack's disability benefit is $1,480 per month. Social Security raises his check from $1,120 per month (his early retirement amount) to $1,480 per month (his disability benefit). He will receive the higher monthly payment permanently. At full retirment age (66 or 67), the benefit automatically converts to a retirement benefit but the amount does not change. It never will, except for small cost-of-living (COLA) adjustments.
SUMMARY: If you need the money, go ahead and apply for early retirement at age 62. Start getting that income each month. If you feel you are medically unable to work,. also file a Social Security disability claim. If you never win the disability claim, you keep getting early retirement benefits. If you eventually win your disability claim, your benefit amount will increase.
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