Some people are under the impression that because they are two different programs, a person is able to collect both Social Security disability payments as well as Social Security retirement payments, but that is not the case.
If you think about it, it makes sense that you would not be able to receive payments from both programs. When you are retired, it is thought that you are no longer in the workforce, so why would Social Security pay someone who claims they can’t work because they are disabled, but is already receiving retirement payments? The easy answer is they would not.
In reality, the only time someone could come close to receiving both types of benefits is when someone begins to collect early retirement payments from Social Security beginning at age 62 and applies for Social Security disability.
Because people who collect early Social Security retirement benefits have to pay about a 20 percent penalty, Social Security allows for disability payments to replace early retirement benefits until a claimant reaches full retirement age, contingent on the claimant being found disabled.
Here Is How It Works
Norman is 62 years old. He just had to leave his job as a construction worker because of physical limitations that will not allow him to work any longer. Norman decides to contact Social Security to receive early retirement payments. If Norman was eligible for $1,000 a month in full retirement benefits, he would receive $800 a month in early retirement because of the 20 percent penalty and that $800 per month would not increase no matter what age Norman reaches. After applying for early retirement, Norman decides to apply for Social Security disability. His claim goes well and Norman is found disabled as of his 62 birthday. Norman’s monthly payments would shift over to disability benefits (which is pretty close to the full retirement amount) and Norman is reimbursed for the 20 percent monthly penalty he was paying when he began to receive early retirement pay. Any questions?
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