Social Security Disability and Age 62
I have had many, many 62 year old disabled clients ask me why they should file for Social Security Disability when they can just file for early retirement. The simple answer is because they will be entitled to a greater amount of money through Title II Disability than they would if they just filed for early retirement. The longer answer is that this person should file for both, and here is the reason why.
Sixty two year old Americans are entitled to apply for and receive Social Security Retirement benefits. The catch, of course, is that if they elect to take early retirement, their monthly benefits will be less than what they would receive if they wait until their retirement of either 65 or 67. If that same person, however, becomes disabled in between the ages of 62 and 65, their Social Security Disability benefits are not reduced because they begin their benefits in between those ages. So, the smart move is, if you find yourself unable to work because of a disability and you are between the ages of 62 and 65, is to file for both early retirement and Social Security disability, at the same time. This is the smart move because your retirement benefits will start immediately, to provide income while you are waiting for your disability application to be evaluated. Yes, you will receive less income than if you waited for full retirement, but most people need that money to live on. Now, you have the early retirement income, and you are waiting for the Social Security Administration to review your application. The application is ultimately approved. You start to receive your full monthly benefits. You do not receive early retirement benefits any longer because you Are receiving Social Security Disability and you cannot receive both at the same time. However, for those months that you were receiving the lower early retirement benefit you will receive a one-time lump sum benefit made up of the difference between your reduced early retirement benefits and your Disability benefits for those months you were disabled, but your application was pending.
There are a few other factors that play into exactly how much money you will receive. If you would like to discuss this with me, please feel free to call and I will be happy to advise you on the options that best serve your needs.