When individuals reach the age of 60, especially those facing health issues or disabilities impacting their ability to work, opt for early retirement. The idea of stepping back from decades of employment, embarking on long-awaited adventures, and spending quality time with loved ones holds much more appeal than continuing in a diminished capacity at work.
However, from the standpoint of benefits, opting for early retirement may not be the most advantageous approach. While the allure of early retirement is understandable, it’s advisable to be aware of the Social Security disability rules after age 60.
Get the Most of Your Social Security Benefits by Staying Employed
Early retirement at 62 does sound tempting. Nevertheless, avoiding early retirement is recommended to receive the highest benefit possible. Choosing this option automatically reduces the Social Security benefits you could get based on the number of months before your full retirement age. Early retirement could result in collecting as little as 70% of the benefits you would be entitled to at your full retirement age.
On the other hand, if you continue working and apply for Social Security Disability Insurance (SSDI), your benefit amount will be equivalent to what you’d receive at age 67 if you retired. Once you reach retirement age, your Social Security disability benefits will seamlessly convert into “retirement benefits” without reducing the monthly payment – only the name changes.
Applying for Early Retirement at 62 |
Applying for Disability at 62 |
| 70% of Social Security Benefits | 100% of Social Security Benefits |
Age Is Not Just A Number
Have you reached 60? Congratulations!
The good news is that your chance of being approved for Social Security disability benefits just went up! The closer you are to retirement, the higher the chance.
Here’s the thing: in the eyes of the Social Security Administration (SSA), age is one of the main factors affecting employability, even if you feel much younger than your actual age. For Social Security purposes, once you hit 60, you are considered “closely approaching retirement age,” meaning that the Social Security law treats you differently than your younger coworkers.
Social Security Disability Rules Make Eligibility Easier After Age 60
When applying for disability after turning 60, the SSA refers to the Grid Rules to assess eligibility. These rules take into consideration four factors that potentially impact employability and work capacity:
- Age: The older an individual is, the more challenging it becomes to secure new employment, especially when dealing with a disability.
- Education Level: Higher levels of education generally increase one’s employability.
- Work Experience: Individuals with transferable skills from their past work experiences have a better chance of finding alternative employment. A lack of transferable skills can strengthen the case for being deemed disabled.
- Residual Functional Capacity (RFC): This refers to the level of mental and physical exertion an individual can sustain on a regular basis in a work environment. RFC categories range from “sedentary” to “heavy,” and claimants are assigned one based on their medical records.
The SSA acknowledges the unique challenges workers face approaching retirement age, such as acquiring new skills and transitioning into new workplaces. As a result, claimants over 60 are much more likely to be approved for disability benefits when evaluated using the Grid Rules.
The Grid Rules in Action
Let’s take a look at a couple of scenarios to understand how the SSA applies the Grid Rules to determine disability eligibility:
Scenario #1:
- RFC: Sedentary
- Education: 11th-grade education or less
- Work Experience: Skilled or semiskilled work without transferable skills
- Decision: Eligible for Disability
- Rationale: A lower education level with no transferable skills reduces employability.
Scenario #2:
- RFC: Sedentary
- Education: High school graduate/GED or more
- Work Experience: Skilled or semiskilled work without transferable skills
- Decision: Eligible for Disability
- Rationale: Lack of transferable skills outweighs the higher education level regarding future employability.
Scenario #3:
- RFC: Light work
- Education: High school graduate/GED or more
- Work Experience: Unskilled work or no past relevant work
- Decision: Eligible for Disability
- Rationale: Lack of relevant work experience outweighs higher education level for future employability.
Scenario #4:
- RFC: Light work
- Education: 11th-grade education or less
- Work Experience: Skilled or semiskilled work with transferable skills
- Decision: Not eligible for disability
- Rationale: Transferable skills open opportunities for less physically demanding jobs, regardless of lower education level.
Scenario #5:
- RFC: Light work
- Education: Recent education or training for skilled work
- Work Experience: Skilled or semiskilled work with or without transferable skills
- Decision: Not eligible for disability
- Rationale: Recent specialized education or training increases employability.
Scenario #6:
- RFC: Medium
- Education: High school graduate/GED or more
- Work Experience: Skilled or semiskilled work without transferable skills
- Decision: Not eligible for disability
- Rationale: A high RFC level and higher education level are deemed to be the ability to work, hence ineligible for disability.
Notes:
- All scenarios apply to individuals with disabilities who are over 60 years of age.
- Each case must be evaluated individually. The above examples are not general rules.
- If individuals can perform heavy work, they will not be approved for disability under the Grid Rules, regardless of age.
Maximizing Social Security Benefits After Age 60
Navigating Social Security disability rules after age 60 involves balancing retirement plans and disability benefits. Opting for early retirement at 62 can lead to reduced Social Security benefits while applying for SSDI offers financial stability without compromising benefits. And while this path might be financially worthwhile, it’s not always easy to go through that path, mainly because people are also facing a disability. Given the complexities involved, getting legal support is recommended. A dedicated and professional team can help you assess your situation and make a good case when applying for disability. At Bluestein Attorneys, our Social Security Disability team has experience helping our clients navigate the sometimes complex pathway from becoming disabled to receiving SSDI, and we’d be happy to schedule a free consultation with you. You can reach us by phone at (803) 779-7599 or contact us online anytime.
