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I am wondering if someone can answer a question for me. My aunt had SSDI for about six years and then was able to return to work. What effect does that six years of disability have on her overall Social Security when she decides to retire?
They do? That's a bit confusing because I know if you are on SSDI at retirement age your SSDI "turns into" SS, so I'm confused about the different pots.
They do? That's a bit confusing because I know if you are on SSDI at retirement age your SSDI "turns into" SS, so I'm confused about the different pots.
Yes it does, because you're now retirement age. No need to collect disability because you can't work due to medical issues.
I am wondering if someone can answer a question for me. My aunt had SSDI for about six years and then was able to return to work. What effect does that six years of disability have on her overall Social Security when she decides to retire?
It depends. When someone is found disabled, the earnings record is frozen. IOW, let's say your Aunt worked for 25 years before she became disabled and never returned to work. Rather than divide her years of earnings by the highest 35 years, SS would divide her earnings by the highest 25. There are no zeros during her period of disability.
In all likelihood, your Aunt has lost nothing. The disability check she received should have been the same amount she would have received had she reached full retirement age. If her new work pays higher than her previous earnings, her retirement check will increase accordingly. However, if her new work pays LESS than her previous earnings, it is possible she would have been better off continuing to receive the disability benefit until she retired. It all depends on her prior earnings record and current wages. So, no one can really tell you what effect the six years of disability will have on her retirement benefit without more information.
Usually, there is no negative effect. It's kind of complicated, eh?
It is. I was just curious though. I have now found out that my aunt's job doesn't pay into ss, they have a pension or retirement fund. I never heard of not paying into ss!
It depends. When someone is found disabled, the earnings record is frozen. IOW, let's say your Aunt worked for 25 years before she became disabled and never returned to work. Rather than divide her years of earnings by the highest 35 years, SS would divide her earnings by the highest 25. There are no zeros during her period of disability.
In all likelihood, your Aunt has lost nothing. The disability check she received should have been the same amount she would have received had she reached full retirement age. If her new work pays higher than her previous earnings, her retirement check will increase accordingly. However, if her new work pays LESS than her previous earnings, it is possible she would have been better off continuing to receive the disability benefit until she retired. It all depends on her prior earnings record and current wages. So, no one can really tell you what effect the six years of disability will have on her retirement benefit without more information.
Usually, there is no negative effect. It's kind of complicated, eh?
I'm still kind of confused. I was finally declared disabled last October, retroactive to the date of the car accident, April 4, 2012. I was 58 & 1/2 at the time. I'd worked since I was 16, with a year or two off to have my son. So, is my fra 62, 65 or 67? I did work as much as I could but finally had a back operation last March & never did fully recover so was no longer able to work. The time I did work after the accident was part time. But, I had more than enough quarters & was well paid for the last 15 years of my career.
It is. I was just curious though. I have now found out that my aunt's job doesn't pay into ss, they have a pension or retirement fund. I never heard of not paying into ss!
there are some occupations that are exempt from paying into SS, mostly teachers and law enforcement. But if you don't pay into SS you are ineligible for SSDI, you would have to apply for SSI which is not based on earnings
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