– Matt Sauerwald, President, Disability Help Group
Matt Sauerwald is one of the nation’s top Disability Advocates. Matt has spent more than a decade helping people who are unable to work due to a disability, representing thousands of clients along the way. He knows the disability benefits process can be confusing, and that it may be unclear whether an older worker should apply for SSDI or skip straight to retirement benefits. Here’s what you should know.
Many people who become disabled after 60 don’t think it’s worthwhile to file for SSDI benefits. Most people know the process for applying for benefits and then possibly going through a lengthy appeals process can take months–or even years. Since you can take early Social Security retirement benefits at 62, it may not seem worthwhile to go through the process. But, the process may be less daunting than you think. And, applying for SSDI, even if it’s only for a few years, can mean significantly more income for you.
The SSDI Application Process after 60
When an applicant for Social Security disability benefits is 55 or older, the Social Security Administration (SSA) uses grid rules in place of the usual evaluation of residual functional capacity. That’s because younger workers who have the capacity to perform some type of work may be expected to retrain and pursue a different type of employment. But, workers of an “advanced age” are assessed as follows:
A person of advanced age who is no longer able to perform past work and has limited education is considered disabled unless they have skilled or semi-skilled work experience with skills that are transferable to another kind of work they could perform with their disability
A person of advanced age who is no longer able to perform past work and has graduated from high school or has a higher education is considered disabled unless either their education or skills from skilled or semi-skilled past work is transferable to another kind of work they could perform with their disability.
So, the process may not be as challenging or as drawn out for older SSDI applicants.
How Applying for SSDI after 60 Offers More Benefits
Imagine that you become disabled at age 61. You know you can apply for Social Security retirement benefits at 62, so it may not seem worth it to apply for disability benefits. Here’s why you’ll likely receive far more in benefits if you start with SSDI:
When you are awarded SSDI benefits, you will usually receive “back pay” to the date of your application. So, if you apply at 60 or 61, you could receive a year or two of benefits that you would miss out on if you waited to apply for retirement benefits.
When you take Social Security retirement benefits early, your monthly benefit is reduced–and the reduction is permanent. For example, if you take retirement benefits at 62%, your benefits could be reduced by as much as 30%. That adds up to a lot of money across your remaining years. However, when you receive SSDI, you get the full amount you would have received if you’d taken Social Security retirement on schedule.
For most people, applying for Social Security disability is a better option than taking early retirement benefits. If you need help with your disability claim or appealing an SSDI denial, Disability Help Group is here for you. To learn more about how we can help, call 800-800-3332 or contact us here.
Matthew Sauerwald has been a dedicated voice for the people seeking disability benefits since 2010. He has represented thousands of claimants fighting for Social Security disability or VA disability benefits, and currently leads Disability Help Group, one of the most successful disability advocacy organizations in the United States.
Receiving a denial notice after you apply for Social Security disability benefits can be disheartening. But, that initial denial notice isn’t the end of the road. You can’t afford to give up. Here are three key reasons you should appeal your SSDI denial.
It’s Worth Your While to Fight for Social Security Disability
Most Social Security Disability Claims are Initially Denied
If you didn’t know what you were up against, your SSDI denial notice may have taken you by surprise. Unfortunately, most Social Security disability applications are denied at first. The Social Security Administration (SSA) says on average, about 21% of initial claims are approved each year. Worse, some people lose out on benefits because they give up when they receive the denial notice. But, a great many of those who are initially denied do receive disability benefits if they persist.
Sadly, many applicants give up after the first denial, not realizing that if they chose to continue through the process of requesting reconsideration and then a hearing before an administrative law judge (ALJ), there’s a good chance of securing disability benefits at a later stage.
You Paid for Social Security Benefits
Many people think of SSDI benefits as a public benefit like Medicaid or SNAP, funded by the government to help people in difficult circumstances. But, Social Security is different. You pay into the Social Security system with every paycheck, and your employer pays in on your behalf.. If you’re self-employed, your self-employment taxes cover the combined amount. If you find yourself unable to continue working due to a disability, it’s your time to collect those benefits.
Reapplying is Not the Same as Appealing
An SSDI applicant who does not appeal their denial or who loses on appeal can reapply. But, reapplying isn’t a substitute for appealing. For example, if you successfully appeal your denial, you can be awarded back benefits. But, if you let your time to appeal expire, the decision becomes final. That means the Social Security Administration (SSA) has already determined that you were not disabled for the period covered by your initial application. You won’t be able to get benefits for that time period, even if your second application is approved. Depending on how long it has been since you worked, you could even lose eligibility by waiting and reapplying.
The Bottom Line on Appealing SSDI Denial
For most applicants, seeing the appeals process through is the best course of action after being denied Social Security disability benefits. You can significantly improve your chances of success at each subsequent step if you have knowledgeable guidance. For example, most requests for reconsideration are denied, since they’re just a review of the same materials. But, some applicants can secure benefits at this stage by providing supplemental information.
An experienced disability benefits advocate can be your best resource. To learn more about how Disability Help Group can help, call 800-800-3332 or contact us here.
– MATT SAUERWALD, PRESIDENT, DISABILITY HELP GROUP
Matt Sauerwald is a leading advocate for the disabled. For more than 10 years, he’s worked on behalf of people who are disabled and can no longer work. Matt has represented thousands of people seeking disability benefits and knows how confusing and stressful the process can be.
Here, Matt sets the record straight on earning money while on Social Security disability.
Earnings on SSDI v. Qualifying for SSDI
One significant point of confusion regarding income limits for Social Security disability is the difference between income limits for initial eligibility for social security disability benefits and how income is treated for SSDI recipients. The income limit for the initial determination is simple: in 2023, the cut-off is $1,470/month in gross income (before taxes are withheld). That number is increased to $2,460/month for legally blind applicants.
This number, known as the substantial gainful activity (SGA) amount, is updated annually. Note, however, that only income earned from work or self-employment counts.
The income limits while receiving social security disability are a bit more complicated.
Income While on Social Security Disability
Continued eligibility for social security disability is not determined by a single month’s income, nor by an average of monthly income. Instead, the Social Security Administration (SSA) allows disability recipients up to nine “trial work periods” within a five-year period. In 2023, any month in which the SSDI recipient earns more than $1,050 through work counts as a trial month. In trial months, it doesn’t matter how much the recipient earns. Whether it’s $1,051 or $6,000, it counts as one trial month. In other words, there is no hard limit on income in trial work months, and the SSDI recipient continues to receive full benefits.
When they complete nine trial work periods in five years, the recipient enters a transitional period. This period is known as the extended period of eligibility (EPE). During this period, the recipient will still receive monthly benefits, as long as their income doesn’t rise to the level of SGA. If earnings from work hit that limit at any time during the EPE, the recipient will no longer be considered disabled. However, they will receive benefits for the subsequent two months. And, if income drops below the SGA threshold before the 36-month EPE has expired, benefits can be reinstated without a new application.
Applying for and Maintaining SSDI Can Be Complicated
The differing income limits, trial periods, and transitional requirements above can be complex, and they represent just one area of possible confusion in a complicated process. Matt and his team understand how overwhelming it can be, and how important it is that you have knowledgeable guidance, and they’re here to help. Call Disability Help Group today at 800-800-3332 or contact our team here.
Matthew Sauerwald has been a dedicated advocate for the disabled since 2010. He has represented thousands of claimants applying for or appealing denial of Social Security disability or VA disability benefits. Currently, Matt leads Disability Help Group, one of the most successful disability advocacy organizations in the United States.
Social Security disability (SSDI) offers an important safety net for those who are unable to continue working due to injury, illness, or a chronic medical condition. But, the SSDI program is for disabled workers. Those with no work history or insufficient work history generally won’t qualify.
Work Credits Required for SSDI
The number of work credits required to qualify for Social Security disability depends on how old you are when you become disabled. The normal threshold for either SSDI or retirement benefits is 40 work credits. But, the Social Security Administration (SSA) recognizes that someone who becomes disabled early in adulthood won’t have had the opportunity to accrue that many credits. So, younger workers have a lower threshold.
How Are Work Credits Accumulated?
You can earn up to four Social Security work credits per year, but it’s not based on quarters worked. Instead, a certain amount of earnings (which changes from year to year) constitutes one credit. In 2023, $1,640 earns you one credit. When you reach $6,560, you’re done earning credits for the year. The good news for those with patchy work histories is that it doesn’t matter when you earned that money. If you work a single month in 2023 and earn $7,000, you’ll get all four work credits for the year.
Disability Benefits with No Work Credits
Work credits are a set-in-stone technical requirement to qualify for SSDI. If you have no work credits or insufficient work credits, you cannot qualify for Social Security disability benefits. The SSA has no authority to make exceptions. However, children and adults who become disabled before the age of 22 may be entitled to receive benefits on a parent’s record. However, there is one option for disabled adults with no work history or insufficient work history.
Supplemental Security Income (SSI)
SSI is a completely separate program administered by the SSA. SSI is a need-based benefit that is available to senior citizens, the blind, and disabled people with very low income and resources.
In 2023, the income cut-off for an individual is $1,913/month in gross wages or self-employment income, or $934/month in income from non-work sources. For a couple, those amounts are increased to $2,827 and $1,391. There is also a limit on assets, which is $2,000 for an individual and $3,000 for a couple.
Need Help with Disability Benefits?
If you’re unsure whether you qualify for SSDI, you believe there is a problem with your Social Security work record and you aren’t getting enough credit for the work you did, or you need help applying for or appealing a denial of SSDI or SSI benefits, Disability Help Group is here for you. We’ll put our extensive knowledge and experience to work to help you secure the benefits you deserve.
SSDI, or Social Security disability insurance, provides income for U.S. workers who have become disabled and are no longer able to engage in substantial gainful activity. SSDI is different from private disability insurance because it is available to anyone who has sufficient work history and is otherwise eligible. And, it’s different from many other types of public benefits because it is not need-based. While too much income from work can disqualify you from receiving SSDI, other types of income are not considered. For instance, you can be the beneficiary of a trust or receive investment income or have significant assets and still be eligible.
There is a five-month waiting period after you become disabled. For most applicants, that period has expired by the time benefits are approved, so monthly payments start soon after approval. You may even receive a lump sum payment for back benefits or retroactive benefits.
Eligibility for Social Security Disability Benefits
To qualify for SSDI, you must have sufficient work credits. The general requirement is 40 work credits–the same number required for Social Security retirement benefits. You can only earn up to four work credits per year, so reaching this threshold requires that you’ve worked in at least 10 different years. However, younger workers won’t need as many work credits.
If you qualify based on work credits, you must also show that you:
Can’t engage in substantial gainful activity (SGA) because of your medical condition, and
Your condition has lasted or is expected to last for at least 1 year or to result in death
In determining whether you are able to engage in substantial gainful activity, the Social Security Administration (SSA) will consider both your ability to do the work you did previously and your ability to adapt to another type of work.
Additional Benefits Associated with SSDI
Once you’ve been receiving Social Security disability benefits for two years, you will be eligible for Medicare, regardless of your age. This can be a significant benefit for someone who has ongoing medical needs and no longer has employer-sponsored insurance.
Depending on your circumstances, other members of your family may also qualify for benefits. Spousal benefits are limited to spouses (and some divorced spouses) who are at least 62 years old and don’t have access to a larger amount of benefits based on their own record. But, your minor children may qualify for additional benefits when you receive SSDI.
Get Help with Your SSDI Claim
To secure Social Security disability benefits, you will have to provide substantial proof of your medical condition and the associated limitations. Most initial SSDI applications are denied, and the appeals process can be long and complex. The earlier in the process, you get help from a knowledgeable disability benefits advocate, the better.
To learn more about how Disability Help Group can assist you in putting together the strongest application or appeal possible, call 800-800-3332 or contact us here.
