The difference between SSDI and SSI
To understand what happens to your benefits, you must first know which type you are receiving. The Social Security Administration (SSA) primarily offers two types of disability benefits: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
Social Security Disability Insurance (SSDI)
SSDI is for those who have worked and paid Social Security taxes for a sufficient length of time. It is an insurance program, meaning your benefit amount is based on your earnings history. It is not a needs-based program; therefore, your personal income and assets do not affect your eligibility or payment once you are approved.
Supplemental Security Income (SSI)
SSI is a needs-based program for people with limited income and resources. Unlike SSDI, it is not dependent on your work history. The financial eligibility requirements are strict, and your income and assets are regularly reviewed by the SSA. Eligibility can be based on age (65 or older), disability, or blindness.
The conversion of SSDI to retirement benefits
For most SSDI beneficiaries, benefits do not change at 65. Instead, your disability benefits will automatically and seamlessly convert to Social Security retirement benefits when you reach your specific full retirement age (FRA). This transition happens without any loss of your monthly payment. The benefit amount remains the same, though it may be affected by annual Cost-of-Living Adjustments (COLAs).
An important change for SSDI recipients upon reaching their FRA is the cessation of continuing disability reviews (CDRs). The SSA periodically conducts CDRs to ensure that SSDI beneficiaries still meet the medical criteria for disability. Once your benefits convert to retirement, these medical reviews are no longer required.
What is your full retirement age?
Your full retirement age depends on your year of birth. While it was once 65 for everyone, the law changed decades ago. For anyone born after 1960, the full retirement age is 67. The following table provides a quick reference for understanding when your SSDI will transition:
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
SSI eligibility after age 65
If you receive SSI based on disability, turning 65 is an important milestone. At 65, you are considered eligible for SSI based on your age, which means you no longer need to meet the disability criteria. However, you must still meet the strict financial requirements for income and resources.
The SSA will reassess your financial situation to determine continued eligibility. This is why for SSI recipients, turning 65 can be a significant change. If your financial status has improved, your SSI benefits could be reduced or stopped. This is particularly relevant if you also become eligible for retirement benefits, as this additional income could push you over the SSI income limit.
How retirement affects Medicare eligibility
For most SSDI recipients, you become eligible for Medicare after receiving disability benefits for 24 months. If you turn 65 before completing that waiting period, you become eligible based on age instead. Your Medicare coverage is generally unaffected by the conversion of your SSDI benefits to retirement benefits. If you have been receiving Medicaid, turning 65 can also impact your eligibility, as some rules change for seniors.
Special considerations and potential adjustments
While the conversion of benefits from SSDI to retirement is straightforward for many, there are situations where you may see adjustments:
- Offset from other benefits: If you were receiving workers' compensation or another type of public disability benefit, your Social Security benefit might have been reduced. This offset generally stops when you reach your full retirement age, which could lead to an increase in your monthly Social Security payment.
- Receiving both benefits: It is possible for a person to receive both SSDI and SSI simultaneously, sometimes referred to as concurrent benefits. If you are a concurrent beneficiary, your situation is more complex. When you reach your FRA, your SSDI converts to retirement, but this change in income can affect your SSI payment, potentially reducing or eliminating it depending on your financial situation.
- Taking early retirement: Some individuals on SSDI choose to begin taking early retirement benefits as soon as they are eligible (age 62). However, this can permanently reduce your overall benefit amount. For those receiving SSDI, waiting for the automatic conversion at FRA is typically the better option to avoid a reduction.
- Survivor benefits: If you receive benefits as a disabled widow(er) or disabled adult child, your transition at retirement age may also have unique considerations. It is advisable to contact the SSA directly to understand how your specific situation will be affected.
Conclusion: The key takeaway
The most important thing to remember is that for most Social Security Disability Insurance (SSDI) recipients, turning 65 does not automatically change your benefits. It is your full retirement age—which is likely 66 or 67—that triggers the automatic conversion from disability to retirement benefits. For those on Supplemental Security Income (SSI), turning 65 shifts your eligibility from a disability-based to an age-based determination, requiring continued adherence to strict financial limits. Understanding these specific rules is key to a smooth transition and confident financial planning during your senior years. For the most accurate and personalized information regarding your benefits, always consult the official Social Security Administration website: Social Security Administration.
Comparison of SSDI and SSI at Age 65+
| Feature | Social Security Disability Insurance (SSDI) | Supplemental Security Income (SSI) |
|---|---|---|
| Eligibility | Based on work history; automatic conversion to retirement at FRA. | Needs-based; eligibility can continue after 65 based on financial need. |
| Conversion Event | Automatically converts at your Full Retirement Age (FRA). | Not a conversion, but a shift in eligibility criteria from 'disability' to 'aged'. |
| Benefit Amount | Amount generally remains the same after conversion. | Can fluctuate or stop based on changes in income and resources. |
| Medical Reviews (CDRs) | Medical reviews stop after benefits convert to retirement. | Financial eligibility reviews continue after age 65. |
| Medicare | Eligible after 24 months of benefits, or at age 65 if sooner. | May qualify for Medicaid, which can be affected by turning 65. |
| Work History | Requires a sufficient work history. | No work history required. |
Seeking clarification and assistance
The Social Security rules can be complicated, and individual circumstances often require careful review. If you have questions about how your benefits might be affected, it is always best to contact the Social Security Administration directly. Their representatives can provide you with information specific to your case, including your full retirement age and potential effects on any concurrent benefits you may receive. Additionally, free legal services and disability advocacy groups often provide assistance in navigating complex Social Security matters.
