Hi Larry,
I just turned FRA and will start spousal benefits ($947) on a restricted application in Feb this year so I can then take my SS at age 70 ($1800+) with my DRC. My husband took his SS at age 62. I was injured at work and have not worked for 2 years. I am receiving worker comp permanent disability and was just approved for LTD through my employers plan(will last up to 24 months). When I spoke with SS about my spousal benefits I asked about SSD and they said due to my age (65, almost 66) I didn't qualify. The LTD plan is requesting that I apply for SSD benefits as of 01/01/16, the month and year I was injured at work. They stated that after the waiting period, if approved, it will take affect as of July 2016. I am concerned this will greatly interfere with my plan of obtaining my SS at age 70 with the increase from DRC? Also, would SSD reduce/offset my benefit amount ($1372 estimated) by the amounts I am/was getting from workers comp and or SDI during 2016/2017? If I do apply for SSD for this retroactive period what happens to my SS benefit? Can I still take my spousal benefits until 70 and then take my SS with the 32% DRC? My understanding is that SSD stops at FRA and converts to SS retirement benefits instead at that time. Wouldn't this cause my SS benefit to stay at the lesser amount of $1372 for the rest of my life? Is there a workaround so that doesn't happen? Am I missing something? Please advise. Thank you for your time and help!

Hi,

Being awarded Social Security disability benefits (SSDI) would completely blow up your current plan of drawing spousal benefits for 4 years while allowing your own benefit rate to grow until age 70. Your SSDI would convert to retirement benefits at your full retirement age (FRA), and that would make you ineligible for spousal benefits. You could still suspend your retirement benefits at FRA in order to earn delayed retirement credits (DRC) until age 70, but you wouldn't be able to draw spousal benefits even if your own benefits are suspended.

So, your options are to either a) follow your current plan and not file for SSDI, or b) file for SSDI. There is no workaround. If you file for SSDI and are approved, you will receive your full retirement age rate (PIA) starting with the month of your SSDI entitlement, but your SSDI could be offset in full or in part if you also received workers compensation (WC) benefits during that time. Whether or not there would be an offset depends on the amount of your WC in relation to the amount of your past average earnings (https://www.ssa.gov/OP_Home/handbook/handbook.05/handbook-0504.html). Your SSDI would then convert to retirement benefits when you reach FRA, at which point your WC would no longer potentially offset your retirement benefits.

Our maximization software will allow you to compare your options so that you can determine the overall effects of each choice.

Best, Jerry