I am 64 years old and on SSDI. My husband was on SSDI when he died at 56 years of age(2011) so I also collect survivors benefits. I started receiving SSDI and survivors in 2014. I wish to take advantage of the "Ticket to Work" program. How does this affect my benefits? And is there a way to increase my current Soc Sec benefits when I turn 66 or by suspending and waiting until I am 70. Will your software work for me? I have already spent a lot for a CFP and this appears to be beyond her knowledge. Thank YOU!

Hi,

I'm not that familiar with the 'Ticket to Work' program, but it basically just offers people on Social Security disability (SSDI) a chance to sign up with an employment network for the purpose of finding a job. The employment network may also provide vocational training. For more information on the program, refer to this Social Security publication: https://www.ssa.gov/pubs/EN-05-10061.pdf.

If and when you do return to work, the rules regarding SSDI are the same whether or not you're on a ticket. You basically have a 9 month trial work period during which you can earn any amount and not lose your SSDI benefits. After that if you continue to earn more than the substantial gainful activity (SGA) guideline (currently $1180 per month) then your benefits can be suspended. For more information on how work can affect SSDI, refer to this Social Security pamphlet: https://www.ssa.gov/pubs/EN-05-10095.pdf.

However, since you are also receiving survivor benefits those benefits could be subject to withholding based on the regular Social Security earnings test rules. In other words, if you earn more than $17040 this year Social Security would need to withhold $1 of your survivor benefits for each $2 that you go over that amount (https://www.ssa.gov/planners/retire/whileworking.html).

It's important to note, however, that once you reach your full retirement age (FRA) of 66 your SSDI will convert to regular Social Security retirement benefits at the same rate. And, beginning with FRA neither your retirement benefits nor your survivor benefits would be affected regardless of how much you work and earn.

You could suspend your retirement benefits when you reach FRA in order to increase your retirement benefit rate, but your survivor benefits would be offset dollar for dollar by any such increase. Furthermore, Social Security wouldn't pay you any survivor benefits while your retirement benefits are in suspense (https://www.ssa.gov/planners/retire/suspendfaq.html). Therefore, by suspending your benefits you may just be giving up all of your payments for a period of time for no net gain in your overall benefit rate when your benefits are reinstated. Our software could help you with the math on this, but unless your survivor rate is very small then suspending your retirement benefits at FRA may be disadvantageous.

If you became entitled to survivor benefits in the same month or later than the month that you started drawing SSDI, your survivor rate may automatically go up when you reach FRA. When SSDI entitlement precedes or is concurrent with reduced widow(er) entitlement, any reduction for age applied to the survivor rate is removed at FRA (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615350). However, if your survivor benefits started prior to your SSDI then this adjustment wouldn't apply to you and your survivor benefit rate stay the same when you reach FRA.

Best, Jerry