I retired from the USAF and receive 100% VA disability benefits. I'm 58 years old. We have a disabled son, age 23, receiving SSI (offset for our "in-kind" contributions). I've applied for SSDI, with the idea that, if approved, my son could get off SSI and receive money from my SSDI.

However, I'm curious if receiving SSDI would lower my SS retirement benefits. Up until recently, I had planned on waiting till I turned 70 to begin retirement benefits...my last estimate placed that at $4000/month. If I get SSDI benefits, they're estimated to be about $2500/m. Will doing so reduce my retirement benefit, and more importantly, will my son receive less when I kick the bucket?

Thanks in advance

Hi,

No, your retirement benefit rate would not be lowered if you receive Social Security disability benefits (SSDI). Nor would it have any adverse effect on your son's potential disabled adult child (DAC) rate on your record, either while you are living or after your death. If fact, your SSDI entitlement would likely have a positive effect on both your and your son's future benefits because of the way that retirement benefit rates are computed when a person initially qualifies for SSDI prior to age 62.

Normally, retirement benefit rates are calculated using an average of a person's highest 35 years of wage-indexed earnings (https://www.ssa.gov/pubs/EN-05-10070.pdf). However, when a person qualifies for SSDI prior to age 62 fewer years are used, permitting some lower earnings years that would otherwise drag down the person's average annual earnings to be excluded. For example, if you are approved for SSDI at age 58, your future retirement rate will likely be based on an average of your highest 31 years of wage-indexed earnings as opposed to 35 years. This can have a particularly positive effect on benefit rates when it results in the exclusion of zero earnings years that would otherwise be used in the calculation.

If you are approved for SSDI and continue to receive those benefits until your full retirement age (FRA), your SSDI will automatically convert to regular retirement benefits at FRA. You could then choose to suspend your benefits in order to draw a higher rate at age 70, but that would not result in a higher DAC rate for your son either before or after your death. Furthermore, if you did choose to voluntarily suspend your benefits between FRA and age 70 your son could not be paid DAC benefits while your benefits are suspended.

Best, Jerry