The SSA provides numerous types of compensation for Americans including Social Security Disability and Social Security Retirement. They are similar in the way they work but there are some key differences between the two that can directly impact your income.
First, the minimum age you can file for disability is 18 years old, providing you have obtained enough work credits. You can only obtain disability if you’re unable to work and pass the strict requirements of the Social Security Administration.
The minimum age you can file for retirement depends on when you are born. For instance, if your your full retirement age is 66, you can file for early retirement benefits at 61 years and 9 months. Benefits will start once you reach 62. However, full retirement age is not until 66, so if you retire early you’ll receive less of a benefit.
The primary advantage disability has over retirement is that you’ll receive your full retirement benefits as if you retired at age 66. In addition, you’ll automatically receive Medicare benefits beginning two years after your SSD benefits start as well. In a retirement scenario, you won’t receive Medicare until age 65.
Disabled? Don’t Retire Early.
To sum it up, if you’re under age 62 then you’re not eligible for retirement and should file disability instead. If you’ve reached minimum retirement age but meet the requirements of the Social Security Disability program, it may be a better idea to pursue disability benefits instead of retirement.
You’ll be able to keep disability benefits until age 66 where they will automatically convert to full retirement benefits.
Choosing to retire early leaves you with reduced benefits for the rest of your life.
Because everyone has a unique set of circumstances, you should consult with a Social Security attorney before making any life-changing decisions.