We’ve had reports from some of our clients that when they went into Social Security to apply for disability benefits, they were encouraged (or pressured) to put in an application for early retirement as well.
It is important for people seeking disability to know that simply because they are old enough to take early retirement, it is not a requirement!
When you take early retirement, you get a percentage of your monthly benefit (your Primary Insurance Amount or PIA) based on how far away you are from full retirement. This table breaks down the reductions in benefits based on your age and birth year.
If a person who has been getting early retirement is ultimately approved for disability benefits, then they will retroactively get paid the difference between the early retirement amount and the full disability amount. They will also be eligible for a “disability freeze” for the period of time that they were unable to work due to disability.
It is important to sit down with a financial adviser to determine if taking early retirement makes sense for you and your family. Don’t allow yourself to be pressured into beginning early retirement by an employee of Social Security.