Will a Disabled Child’s Benefits Increase When a Parent Retires at 62?

Have a client who is going to start Soc Sec benefits at 62. Her estimate is about $2,400 per month.  She has a daughter who is 24, and will be 25 in Sept.  She has been physically and mentally disabled and receives SSI (which is $947 per month). Will she get an increase when my client retires next year, and starts her Soc Sec benefits?

In this scenario, the client's daughter, who is currently 24 years old and receives $947 per month in SSI, may see a significant change in her benefits when her mother begins Social Security retirement benefits at age 62. The key factor here is whether the daughter was determined to be disabled before the age of 22.

If the daughter was indeed disabled before turning 22, her SSI payments will stop, and she will become eligible to receive Social Security benefits based on her mother’s work record. Specifically, the daughter would receive 50% of her mother’s Primary Insurance Amount (PIA), which is the benefit her mother would receive at Full Retirement Age (FRA).

It's important to note that the mother's decision to start benefits at age 62 will not reduce the amount the disabled adult child receives. While the mother’s own benefit is reduced by claiming early, the daughter’s benefit will still be based on the mother’s full retirement age benefit, or PIA.

This transition from SSI to Social Security benefits is significant because the daughter will likely receive a higher benefit amount than her current SSI payment. However, it's important to be aware that this change may also affect eligibility for other need-based programs the daughter might be receiving, as Social Security benefits could be higher than SSI.

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