Can You Get Retirement and Disability in California?

As you approach retirement, you might wonder if it’s possible to collect both Social Security retirement and disability benefits at the same time. Knowing how these programs interact can help in maximizing your financial security, especially if you’re dealing with a disability before reaching retirement age. 

In California, the rules around receiving both types of benefits can be complex, with certain exceptions and conditions that may apply. In this article, we’ll explore whether you can get retirement and disability in California and how a lawyer can help you navigate the process to ensure you’re receiving the full benefits you may be entitled to.

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Understanding Social Security Retirement and Disability Benefits

Before diving into whether you can collect both retirement and disability benefits, it’s important to understand the two programs:

• Social Security retirement benefits are based on your earnings history and become available to you at the age of 62 or later, depending on whether you opt for early retirement or wait until full retirement age.
• Social Security Disability Insurance (SSDI) provides financial assistance to individuals who are unable to work due to a disabling condition. Eligibility is based on your work history and payment of Social Security taxes.

Both benefits are provided by the Social Security Administration (SSA), but they serve different purposes. While retirement benefits are age-based, SSDI is for those with a qualifying disability. So, can you receive retirement and disability at the same time?

Can You Collect Retirement and Disability at the Same Time?

Generally, the answer is no—Social Security does not allow individuals to collect both full SSDI and retirement benefits simultaneously. However, certain scenarios allow for a smooth transition between the two.

Before reaching full retirement age: If you are disabled and qualify for SSDI, you can receive disability payments until you reach your full retirement age (which depends on your birth year). At that point, your SSDI benefits automatically convert to retirement benefits without any reduction in the total amount.

After reaching full retirement age: Once you reach full retirement age (typically between 66 and 67), you cannot receive both SSDI and retirement benefits at the same time. Your SSDI will automatically transition into retirement benefits.

In most cases, SSDI serves as a bridge to retirement for those who are disabled before reaching retirement age, which is why it is generally not possible to collect both types of benefits at the same time.

To find out how these rules apply to your specific situation, an experienced disability lawyer can help you with your case and maximize your benefits.

Early Retirement and Disability Benefits: The Exception

While it’s generally not possible to collect full SSDI and retirement benefits simultaneously, there is an important exception involving early retirement. If you choose to begin collecting early retirement benefits before reaching your full retirement age, and later qualify for SSDI, the SSA may adjust your benefits.

Here’s how it works:

• If you start collecting reduced early retirement benefits at age 62 and are later approved for SSDI, the SSA will begin paying you the higher disability benefit rather than the reduced retirement benefit. This adjustment ensures you receive the maximum amount you’re entitled to.
• The period during which you received reduced early retirement payments will not be counted against you for SSDI purposes, meaning you could receive the full SSDI benefit, retroactively for up to 12 months prior to approval.
• Once you reach full retirement age, your SSDI benefits will convert to standard retirement benefits without further reductions.

This exception allows individuals who have taken early retirement due to financial necessity or health issues to still claim the higher SSDI benefit if they later qualify. If you’re considering early retirement and have concerns about your eligibility for SSDI, it’s important to speak with an attorney to evaluate your situation and make the best decision for your financial well-being.

Maximizing Your Benefits: Choosing Between Retirement and Disability

Deciding whether to take early retirement or apply for SSDI depends on your unique situation. Here are some factors to consider:

1. Health Condition: If you are disabled and unable to work, applying for SSDI may be the best option, as it will allow you to receive your full benefit.
2. Financial Needs: Early retirement provides immediate financial relief but comes with a permanent reduction in benefits. SSDI, on the other hand, offers full benefits but may take time to process.
3. Long-Term Impact: Remember that early retirement can significantly reduce the amount of benefits you receive over time, whereas SSDI pays full retirement benefits if you qualify.

If you are unsure of the best path forward, consulting with an attorney can help clarify your options and help ensure you make the best financial decision for your future.

Can You Get SSI and Retirement at the Same Time?

Supplemental Security Income (SSI) and Social Security retirement benefits are two distinct programs, and while it is possible to receive both at the same time, it depends on your specific financial situation.

SSI is a needs-based program designed to help individuals who are aged, blind, or disabled with limited income and resources. It is not based on your work history, but rather on your current financial need. Social Security retirement benefits, on the other hand, are based on your work record and the Social Security taxes you’ve paid throughout your career.

You may qualify for both SSI and retirement benefits under these circumstances:

• Low retirement benefits: If your Social Security retirement benefit is low—perhaps because you had a limited work history or earned lower wages—you might still qualify for SSI. This is because SSI is designed to supplement low income, ensuring that your total monthly benefits (from SSI and retirement) reach a certain minimum level.
• Income and resource limits: To receive SSI while also collecting retirement, you must still meet the income and asset limits required for SSI eligibility. The SSA considers factors like your household income and personal assets, and if your retirement benefits push your total income above SSI limits, you may no longer qualify for SSI.

It’s important to note that any Social Security retirement income you receive will be counted as part of your overall income, which could reduce your SSI benefit. However, in some cases, SSI may provide a small monthly supplement in addition to your retirement benefits to help cover living expenses.

Dr. Bill LaTour Can Help You Navigate Retirement and Disability Benefits

Understanding whether you can get retirement and disability benefits at the same time can be complex, especially with various eligibility rules. Dr. Bill LaTour and his experienced team can guide you through the process, helping you understand your options and maximize your benefits. Whether you’re dealing with SSDI, early retirement, or SSI, you don’t have to face these challenges alone.

Contact us today for a free consultation and personalized assistance with your retirement and disability claims in California.