The Core Difference Between SSDI and Social Security Retirement
Social Security Disability Insurance (SSDI) and Social Security retirement benefits are both administered by the Social Security Administration (SSA) but serve different purposes. SSDI is for workers who become disabled before reaching their full retirement age (FRA) and cannot engage in substantial gainful activity due to their medical condition. Once a person receiving SSDI reaches their FRA, their benefits automatically transition from disability benefits to retirement benefits without any interruption in payment or change in the monthly amount. For anyone born in 1960 or later, this transition occurs at age 67.
Why Age 70 is Past the SSDI Application Window
For new applicants, the deadline to apply for SSDI is the month before they reach their FRA. The FRA varies based on your year of birth, but for those who are currently age 70, this window closed several years ago. Since SSDI is designed to provide a financial bridge for workers who become disabled before retirement, once you are at or past your FRA, the assumption is that you will claim your retirement benefits instead. Therefore, submitting a new SSDI application at age 70 will be denied based on age eligibility alone, regardless of the severity of your medical condition.
What Happens When Already Receiving SSDI at Full Retirement Age?
If you were fortunate enough to have qualified for and received SSDI benefits before you reached your FRA, the process is simple and automatic. The SSA will automatically switch your benefits from SSDI to retirement benefits when you reach your FRA. The benefit amount you receive will not change; you will simply be collecting it under a different program designation. This conversion has several key implications:
- No Interruption: There is no gap in payments, ensuring a continuous flow of income.
- No Application Needed: You do not need to fill out any new paperwork or take any action for the conversion to happen.
- End of Continuing Disability Reviews (CDRs): A major advantage is that you will no longer be subject to CDRs, which are periodic reviews the SSA conducts to ensure you still meet the medical definition of disability. Your retirement benefits are not dependent on your medical condition.
Your Options for Benefits at Age 70
Since applying for new SSDI benefits is not an option at age 70, you should instead consider applying for Social Security retirement benefits. The good news is that waiting until age 70 to claim retirement benefits can provide a significant financial advantage. For every year you delay claiming your benefits past your FRA, up to age 70, you earn delayed retirement credits. These credits can result in a much higher monthly payment for the rest of your life.
Let's compare the benefits of claiming at different ages for someone born after 1960, whose FRA is 67:
- Claiming at 67: You receive 100% of your primary insurance amount (PIA), which is the basic benefit you earned from your work history.
- Claiming at 70: You receive your PIA plus delayed retirement credits. For someone with an FRA of 67, this can result in a monthly benefit that is 24% higher than claiming at 67.
A Comparison of SSDI and Retirement Benefits
| Feature | Social Security Disability (SSDI) | Social Security Retirement |
|---|---|---|
| Eligibility | Disabled and unable to work before FRA, sufficient work credits. | At least age 62, or FRA for full benefits, with sufficient work credits. |
| Application Cutoff | The month before reaching full retirement age. | No cutoff; can delay claiming up to age 70 for higher benefits. |
| Work Requirement | Proof of recent work history is required. | Proof of work history (40 credits) is required. |
| Benefit Amount | Equal to your full retirement benefit at FRA. | Varies based on age claimed; reduced for early claim, increased for delayed. |
| Medical Reviews | Subject to Continuing Disability Reviews (CDRs). | Not subject to medical reviews. |
| Benefit Conversion | Automatically converts to retirement benefits at FRA. | Not applicable. |
| Earnings Limit | Subject to Substantial Gainful Activity (SGA) rules. | After FRA, earnings do not affect benefits. |
What if My Condition is Worsening? What About SSI?
If you are at or past your FRA, but have a worsening medical condition, it's important to know that you can still pursue benefits. Since SSDI is off the table, your primary option for earned benefits is Social Security retirement. However, another program, Supplemental Security Income (SSI), may be available. SSI is a needs-based program for low-income individuals who are aged 65 or older, blind, or disabled. Eligibility for SSI is not dependent on your work history but is subject to strict limits on income and resources. Unlike SSDI, you may be eligible for SSI at age 70 if you meet the financial criteria. It's possible to receive SSI in addition to a reduced Social Security retirement benefit if your financial situation qualifies.
Steps for a 70-Year-Old Seeking Benefits
- Assess Your Benefits: If you have not yet applied for benefits, use the SSA's website to check your estimated retirement benefit. This will give you a clear picture of what you can receive by claiming now at age 70.
- Apply for Retirement: The fastest and easiest way to apply for your Social Security retirement benefits is online through the SSA website. You can also apply by phone or in person.
- Investigate SSI: If you have very limited income and resources, explore the eligibility requirements for Supplemental Security Income (SSI). You can apply for SSI at any time, but the financial criteria are strict.
- Consider Legal Counsel: If your financial situation is complex or you need help navigating the application process for either retirement or SSI, a qualified benefits attorney or advisor can provide valuable assistance.
Conclusion
While you cannot initiate a new application for SSDI at age 70, that does not mean you have no options. If you were already receiving SSDI, your benefits seamlessly converted to retirement. If not, age 70 represents the optimal time to claim your Social Security retirement benefits, as you will have maximized your monthly payment through delayed retirement credits. For those with significant financial need, the SSI program provides a separate pathway to assistance. Your focus should shift from disability to maximizing your retirement income, and the SSA provides resources to help you through that process. For more information, the National Council on Aging offers helpful resources on SSDI eligibility and other programs.
