Can Disability Increase Social Security Benefits to Full PIA?

My client is needing to get income now (64 years old) and just applied for SS.  He plans on working and making under the $22,000 amount so he does not subject himself to the earnings test.  If he applies for disability and is accepted, will he get bumped up to his full PIA?

Yes, if your client applies for disability benefits and is approved, he could see an increase in his Social Security benefits. Here’s how it works:

1. Disability Benefits and PIA Adjustment:

   • If your client is approved for Social Security Disability Insurance (SSDI) and the disability period covers all the months he has been receiving retirement benefits, his benefit amount will be adjusted to reflect his full Primary Insurance Amount (PIA). This means that any reduction in benefits he experienced for taking early retirement will be reversed for the months covered by the disability determination.

2. Partial Coverage by Disability:

   • If there are months during which your client received retirement benefits before his disability period begins, those months will still be subject to the early retirement reduction. However, for the months covered by the disability, his benefit will be recalculated to the full PIA, as if he had reached full retirement age.

3. Continued Work and Earnings:

   • Your client’s plan to keep his earnings under $22,000 is a good strategy to avoid the earnings test and potential reduction in Social Security benefits. However, if he is approved for disability, the earnings test no longer applies, and his benefits will be based on his disability status.

If your client is approved for disability benefits and the disability period includes all the months he’s received early retirement benefits, he will be eligible for his full PIA moving forward. For any months not covered by the disability period, the early retirement reduction will still apply. It's a good idea for him to pursue the disability claim if he believes he qualifies, as it could increase his overall benefit.

The content on this blog is for informational purposes only and is not legal, financial, or professional advice. Social Security rules change periodically, so some information may become outdated. For the most accurate advice, consult a certified National Social Security Advisor (NSSA®). Social Security Professionals, LLC, and NSSA® are not responsible for any errors, omissions, or actions taken based on this blog's content. Use of this blog does not create a client relationship, and all information is provided "as is" without guarantees. By using this blog, you agree to hold Social Security Professionals, LLC, and NSSA® harmless from any claims or liabilities arising from its content. For personalized guidance, contact an NSSA® professional.