I am 63 yrs old and getting ready to retire but I want to apply for disability because I having problems with my hands and I work on a computer. Can you suggest the route I should take.

Hi,

You can apply for Social Security disability (SSDI) benefits either online (https://www.ssa.gov/benefits/disability/), or by calling Social Security to make an appointment. If you're currently working and earning an average of more than $1,310 monthly, though, it probably wouldn't do any good to apply until you stop work or if your earnings drop below that level. For 2021, Social Security defines earnings in excess of $1,310 per month as substantial gainful activity (SGA), and if you file for SSDI while you're still working at above SGA level your claim would be disallowed regardless of your medical impairment.

By the way, there is a 5 month waiting period for SSDI benefit entitlement. So, for example, if you stopped work on December 15th and if your SSDI claim is eventually approved with an onset date of 12/15/2020, the first month that you'd actually be eligible for SSDI benefits is June 2021.

You could apply for both SSDI and Social Security retirement benefits at the same time, but your retirement benefit rate will be reduced for age if you start drawing your benefits prior to full retirement age (FRA). That reduction would be permanent unless you get approved for SSDI benefits, but even if your SSDI claim is eventually approved your SSDI rate would be reduced for any months that you received retirement benefits prior to your first month of entitlement to SSDI benefits.

For example, let's say Amy files for Social Security retirement benefits 3 years prior to when she reaches FRA. Amy's primary insurance amount (PIA), which is equal to her full retirement age rate or her full SSDI rate, would be $2000, but her benefit rate is reduced for age to $1600. If Amy is approved for SSDI benefits and if her SSDI entitlement starts 6 months after her retirement benefits started, Amy's SSDI rate would be reduced permanently for the 6 months that she collected retirement benefits. Her ongoing benefit rate would then be adjusted to $1933. In other words, instead of receiving a full SSDI rate equal to her PIA of $2000, Amy would receive a lower rate because she collected 6 months of retirement benefits prior to her first month of SSDI entitlement.

You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry