I have a 58-year-old coworker who will have to take a disability retirement in the next few weeks from the federal government (FERS). Government regulations also requires that he apply for social security disability benefits and if he is approved for social security, then those benefits will offset his government benefits until he turns 62, at which point his government disability payment will automatically convert to a regular government pension. His wife is several years younger than he is and it is very likely that his regular social security benefits will be a lot higher than her benefits. Assuming he receives social security disability benefits now, what would be the ramifications related to social security for his wife, should he pass away before he turns 62 or before his full retirement age of 66? Would your answers change if he is not approved for social security disability payments and just has his government disability pension?

Hi,

I don't know of any downside from your friend receiving Social Security disability benefits. If he qualifies, he would receive essentially his full retirement age benefit early. If he subsequently dies, his wife could still receive an unreduced widow's benefit if she starts drawing them at or after her full retirement age (FRA). If he dies before she reaches FRA, she could choose to start reduced widow's benefits as early as age 60, or even 50 if she's disabled.

If anything, qualifying for SS disability benefits would likely increase your friend's benefit amount, and the potential widow's rate as a result. Social Security retirement benefits are calculated using a person's best 35 years of inflation adjusted earnings. If your friend has no earnings for an extended period of years, it could mean that years of zero earnings would be averaged into the calculation of his benefit amount, resulting in a lower average, and lower benefit rate. On the other hand, if a person qualifies for SS disability benefits prior to age 62, fewer years of earnings are used in the calculation of their benefit amount, resulting in a higher average and higher benefit rate. For example, if a person qualifies for SS disability benefits at age 58, their benefit rate is based on their best 31 years of inflation adjusted earnings. That higher rate then converts to their retirement benefit when they reach full retirement age.

Best, Jerry