Should a Client Apply for Disability After Starting Social Security Retirement?

I have a client that took his Social Security Retirement benefit at age 65, and his Full Retirement Age is 66 and 8 months. He did not take the Medicare Part B as he is still on his wife’s employer plan. He is diabetic and had his leg amputated below the knee. Since he is already taking his social security and is age 65 would he benefit from applying for the disability?

He can apply for SS disability and if approved the reduction factors will be reduced.  Any month he receives a disability benefit the benefit is not reduced for age.  If the disability would cover the entire period he received retirement his benefit would increase to his full PIA.  Since he is already 65 he would keep his Medicare as it is now. 

Here’s why:

1. Applying for SSDI:

   • Potential Increase in Benefits: If your client applies for and is approved for SSDI, his Social Security benefits could increase. Disability benefits are not reduced for age, unlike retirement benefits taken before FRA. If his disability is approved and covers the entire period from when he began receiving retirement benefits, his benefit amount could increase to his full Primary Insurance Amount (PIA), effectively eliminating the early retirement reduction.

2. Impact on Current Benefits:

   • Adjustment of Reduction Factors: Since he is already receiving Social Security retirement benefits, applying for SSDI would reduce or eliminate the reduction factors that apply to his current benefits. The SSDI benefit amount would be calculated as if he had reached his FRA without taking early retirement.

3. Medicare Considerations:

   • No Change to Medicare: As he is already 65 and likely enrolled in Medicare Part A (hospital insurance), his Medicare coverage would remain the same, and there would be no changes required to his current health insurance setup. His wife's employer plan would still be primary, and Medicare would be secondary.

In summary, applying for SSDI could be advantageous for your client, potentially increasing his monthly benefit by eliminating the reduction applied due to early retirement. He should consider applying, especially given his recent disability. If you need any further assistance with this situation, feel free to reach out!

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