Two types of disability benefits are offered by Social Security if medical evidence is available to show someone is unable to work fulltime. These two benefits are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
The SSDI benefit provides monthly benefits, based on a disabled worker’s income prior to becoming disabled, to people who have worked long enough and recent enough to qualify for benefits. The SSI benefit pays monthly benefits to the disabled who have limited income or assets. The medical determination for both programs is the same, but the technical qualifications are much different, especially when a beneficiary is approaching early retirement age.
Social Security allows people to collect early retirement benefits at age 62, but by collecting early there is a 20 percent penalty compared to waiting and collecting at full retirement age. Typically, when someone is receiving SSDI benefits they can continue to collect these benefits, as long as they remain disabled, until they reach full retirement age, which is 67 for anyone born 1960 and later. People who receive SSI benefits are not allowed to wait to collect until full retirement age.
Because SSI is a needs-based program, if a beneficiary is eligible for retirement income, they must begin collecting at age 62, this is because of the needs-based aspect of the program. If someone is entitled to any other benefit while collecting SSI, they must collect that benefit.
This does not apply for everyone who receives SSI. Sometimes people who receive SSI benefits have never worked, or not worked long enough to qualify for Social Security retirement benefits. These people will remain eligible for SSI benefits. To determine your eligibility for retirement benefits you can contact your local Social Security office directly to determine what your Primary Insurance Amount (PIA) would be.
