Your SSI Benefits After Age 65
When you turn 65, your SSI eligibility status transitions from being disability-based to age-based, as long as you continue to meet the strict income and resource limits. This is a key distinction from Social Security Disability Insurance (SSDI), which automatically converts to retirement benefits at your full retirement age. For SSI recipients, the benefit amount will not change simply due to your age, but it can be affected by other income sources, such as Social Security retirement benefits.
Potential requirement to file for Social Security retirement
If you have a work history and paid Social Security taxes, the Social Security Administration (SSA) will require you to apply for Social Security retirement benefits when you become eligible. This is because SSI is considered a last-resort, needs-based program. If your Social Security retirement benefit is less than the federal SSI limit, you can receive both simultaneously, but your SSI payment will be reduced by the amount of your Social Security benefit. However, your total combined monthly benefit will remain the same or increase, not decrease. If your retirement benefit exceeds the SSI income limit, you will only receive the retirement benefit.
How other income affects your SSI payment
SSI is a means-tested program, meaning your countable income affects your monthly payment. At age 65, the same general rules apply, though eligibility is based on age rather than disability. Countable income includes not only wages but also unearned income like your Social Security retirement benefit. The formula for calculating your payment is your total monthly income minus certain exclusions. For example, some earned income and the first $20 of most income are not counted. The higher your countable income, the lower your SSI payment will be, up to the federal maximum benefit. For 2025, the maximum federal benefit is $967 for an individual.
Comparison of SSI and SSDI at Age 65
Understanding the differences between Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) is crucial, as the rules for each program are distinct when you turn 65. Many people receive only SSI, while others may receive both concurrently.
| Feature | Supplemental Security Income (SSI) | Social Security Disability Insurance (SSDI) |
|---|---|---|
| Funding Source | U.S. Treasury general tax revenues. | Social Security taxes paid by workers. |
| Eligibility | Age 65+, or blindness/disability at any age. Requires limited income and resources. | Requires sufficient work history and payment of Social Security taxes. |
| Work History | Not required for eligibility. | Required for eligibility. |
| Transition at 65 | If eligible, transitions from a disability basis to an age basis. Benefits continue as long as financial criteria are met. | Automatically converts to Social Security retirement at full retirement age (66-67). |
| Benefit Amount | Needs-based. Maximum monthly federal benefit is $967 for an individual in 2025. | Based on lifetime earnings, generally higher than SSI. |
| Medical Review | Continues for disability-based recipients until age 65, after which it is no longer required based on age. | Stops at full retirement age when benefits convert. |
| Other Benefits | Often comes with automatic Medicaid eligibility in most states. | Comes with Medicare eligibility after 24 months of benefits. |
Healthcare coverage transitions at 65
For many on SSI, Medicaid is a critical part of their healthcare coverage. The good news is that turning 65 should not affect your Medicaid eligibility if it is tied to your SSI status. However, at 65, you also become eligible for Medicare, which can be particularly advantageous. If you are eligible for both, you become what is known as a “dual eligible” beneficiary. Medicaid may then act as a supplement, helping cover costs that Medicare does not, such as premiums and deductibles.
Planning for dual eligibility
If you were previously on SSDI before converting to SSI, you might already have Medicare. Regardless, turning 65 opens up new opportunities for supplemental insurance and Medicare Advantage plans. You should proactively review your healthcare options around age 65, as the initial enrollment period for Medicare begins three months before your 65th birthday and ends three months after.
The importance of financial planning
Even with the continuity of benefits, careful financial planning is essential around age 65. Funding certain types of special needs trusts, for example, may have deadlines tied to your 65th birthday. Additionally, understanding how new income sources, such as a modest Social Security retirement benefit, might affect your SSI is crucial to avoid any disruptions in payment. Working with a qualified professional can help you navigate these complex rules and ensure a smooth transition.
Conclusion
For those on SSI, turning 65 is a transition in the program’s eligibility category, not an automatic end to benefits. Your SSI will continue as long as you meet the income and resource requirements, which are regularly reviewed by the SSA. You may also be required to apply for any Social Security retirement benefits you are entitled to, which could affect your overall SSI payment. Proactive financial and healthcare planning can help you manage this transition effectively and ensure a stable income stream in your later years.
Note: The information provided is based on federal guidelines. Some states offer supplemental SSI payments, and certain eligibility rules can vary. Consulting the Social Security Administration or a qualified professional for personalized advice is always recommended. For more details on Supplemental Security Income, visit the official SSA website.
