Social Security: Choosing Between Retirement and Disability Benefits

Social Security Disability benefits are awarded to people stricken with an illness or disability. According to the Social Security Administration, a person with disability suffers from a physical or mental condition that is hindering him from doing any "substantial gainful activity." This condition is expected to last for 12 months or result in the person’s death.

Another prerequisite is at least five years of employment for the last 10 years of the person’s life, as of the disability’s starting date. The age requirement is any age under 65. Elderly people, specifically those who are between the ages of 62 to 64, are also eligible for Social Security’s early retirement benefits. This normally happens when they also become disabled by this age.

However, filing for early retirement, instead of SSD, entails penalty. Filing for SSD first avoids the penalties; also, the disability benefits are paid at full retirement age amount, rather than early retirement amount. For example, people who were born in 1944 will turn 66 by year 2010, which is their full normal retirement age. If they filed for early retirement at 62, a $1000 benefit will be reduced to $750, which is 25 percent lower than usual.

If the benefits are not enough for survival, the elderly may pursue early retirement and disability benefits at the same time. The conditions for Social Security retirement age and disability claims are different, depending on the claimant’s situation and the amount he paid over the years. Consulting an attorney may help the elderly decide on what to pursue for.

Once the person hits the full retirement age, he and his family are now eligible for retirement benefits. Family benefits for retirement include the following:


• Spousal: Filing for Social Security benefits will entitle spouses (must be 62 years old) to almost half of the full primary insurance amount.

• Children: Both children and grandchildren (unmarried and dependent on the retired) will receive one-half of PIA, up to a family maximum benefit.

• Divorced spouse: They are eligible for an amount equal to one-half of PIA, but the marriage should have lasted at least 10 years.

• Survivors’: If the retired person died and his spouse reached full retirement age, he/she will receive the benefits of the retired.