I am Confused: Why Shouldn’t I just File for Social Security Retirement Benefits instead of Social Security Disability Benefits?
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What a great question, the Social Security Disability Insurance program is just that, an insurance program that you pay for as a result of the deductions from your paycheck.
If you are disabled and unable to work we believe that you should apply for Social Security Disability benefits and not Social Security Retirement benefits. Here’s why:
1. You have to be age 62 or older to apply for Social Security Disability Retirement benefits.
2. The Social Security Retirement benefits are based on your average earnings during your work life. If you have your earnings reduced because of disability, that means that you have lower retirement benefits. But, if you get Social Security Disability benefits, your Social Security Disability Retirement benefits are based on your earnings before you became disabled, and that can be very important. For example, if you became disabled at age 40 and were disabled until age 62 you could receive more than $1,400 in additional retirement benefits assuming you were making $50,000 a year when you became disabled.
3. If you are disabled you become eligible for Medicare 24 months after you become eligible for Social Security Disability benefits regardless of how old you are.
For many people who are no longer able to work and have no insurance, the only way they get medical coverage is through Medicare.
4. As the cost of living increases, every Social Security Disability recipient gets an increase in their benefits every year based on a consumer price index.
At Cavey and Barrett, we can assist you in making the decision as to whether you should be filing for Social Security Disability retirement benefits early or Social Security Disability benefits. In many ways, we think it is a no brainer, but we understand that this is a very confusing area. We can help you sort through this and help you make the right decision.