Can SSDI recipients switch to retirement benefits at 62 with less penalties for working?
I've been on SSDI for 12 years now and I'm approaching age 62. My full retirement age is 67, but I keep hearing different things about what happens when I hit 62. Does my SSDI automatically convert to early retirement? Can I choose which one I stay on? The main reason I'm asking - I might be able to handle part-time work now, and I heard there are different earnings limits for retirement vs disability. Living on disability alone is practically impossible with today's prices. If I could supplement with some work without losing everything, that would make a huge difference. Anyone know how this works? Do SSDI recipients have any flexibility at 62?
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Sophie Duck
Your SSDI benefits do NOT automatically convert to retirement benefits at 62. They will convert to retirement benefits when you reach your full retirement age (67 in your case), but not before that unless you specifically request it - which would generally be a bad move financially. Here's why: SSDI benefits are equal to what your full retirement benefit would be, regardless of your age. If you switched to early retirement at 62, you'd take a permanent reduction of about 30% compared to your current SSDI payment. As for working, SSDI has the trial work period option which allows you to test your ability to work for 9 months while still receiving benefits. After that, there's an extended period of eligibility. The rules are complicated, but very different from the retirement earnings test.
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Lucas Lindsey
•Thanks for clarifying! I had no idea I'd be taking such a big cut if I switched. So if I understand correctly, I should just stay on SSDI until I reach 67? What about the work limits though - on SSDI I know I can only make around $1,550/month in 2025 before they consider it substantial gainful activity. Aren't the limits higher for retirement benefits?
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Austin Leonard
i was in similar situation 2 yrs ago. the SSA rep told me to STAY on SSDI till FRA!!! Early ret would give me way less $$$. But yeah the work rules r different for retirement, you can earn more b4 they reduce benefits and its not all or nothing like disability
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Anita George
•This is correct. For retirement benefits in 2025, you can earn up to $22,320 annually before they reduce your benefits, and even then they only withhold $1 in benefits for every $2 you earn above the limit. With SSDI, exceeding the SGA threshold ($1,550/month) for too long can result in termination of benefits after your trial work period. The difference is significant, but the benefit amount reduction from taking early retirement almost always outweighs this advantage.
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Abigail Spencer
Something nobody mentioned yet - if you do try working on SSDI, PLEASE contact a WIPA (Work Incentives Planning and Assistance) counselor beforehand. It's a free service through Social Security that helps you understand exactly how working impacts your benefits. I made the mistake of not doing this and had a nightmare situation with overpayments. The SSDI work rules are INCREDIBLY complicated with trial work periods, extended periods of eligibility, expedited reinstatement, etc. Don't try navigating it alone.
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Lucas Lindsey
•I've never even heard of WIPA before - thank you! Did you just contact your local Social Security office to get connected with them?
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Abigail Spencer
•You can find your local WIPA provider by calling the Ticket to Work helpline at 1-866-968-7842. They're usually run by non-profit organizations that contract with SSA. Definitely worth talking to them before making any decisions about working.
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Logan Chiang
My husband tried switching from SSDI to early retirement at 62 because of the work limits thing and it was a DISASTER!!! He lost almost $600 a month in benefits and even with the more flexible work rules he couldn't make up the difference. We ended up having to apply to switch back which took forever. DONT DO IT!!
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Isla Fischer
•I'm so sorry that happened to your husband. You're right that switching back can be extremely complicated. While it's sometimes possible to withdraw an application for retirement benefits, it must be done within 12 months, and you must repay all benefits received. After that window closes, options become very limited. This is why consulting with a benefits planner before making any changes is absolutely critical.
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Miles Hammonds
i thought ssdi and early retirement were the same thing?? arent they both from social security??
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Anita George
•While both are Social Security programs, they're quite different: SSDI (Social Security Disability Insurance) is for people who cannot work due to disability and have enough work credits. The benefit amount equals what your full retirement benefit would be, regardless of your current age. Retirement benefits are based on age - you can take reduced benefits as early as 62, or wait until your Full Retirement Age (usually 66-67 depending on birth year) for full benefits. You can even delay until 70 for increased benefits. They have different eligibility requirements, different work rules, and potentially different payment amounts.
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Isla Fischer
Have you tried reaching the SSA directly to discuss your options? They can provide personalized information about your specific case, including benefit amounts under each scenario. When I needed to get through to an agent at Social Security, I used a service called Claimyr (claimyr.com). They hold your place in the phone queue and call you when an agent is available. Saved me hours of waiting. You can see how it works in this video: https://youtu.be/Z-BRbJw3puU. This way you could get exact figures about what your benefits would be under each option and make an informed decision based on your specific situation.
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Lucas Lindsey
•I've tried calling SSA several times but always get disconnected after waiting forever! I'll check out that service - anything that helps get through to a real person would be worth it. I really need someone to look at my specific case and tell me exactly what would happen with both options.
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Austin Leonard
one more thing!!!! if ur on Medicare cuz of SSDI watch out!!! my cousin switched to early retirement and got messed up with his Medicare somehow. dunno the details but was a huge headache for him
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Sophie Duck
•This is an excellent point. If you've been on SSDI for 12 years, you're already receiving Medicare (which normally starts after 24 months of SSDI entitlement). If you were to switch to retirement benefits before age 65, you'd keep Medicare, but there could be administrative issues during the transition. Just one more reason to be cautious about making a switch.
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Abigail Spencer
One thing to consider - have you looked into the Ticket to Work program? It allows you to test your ability to work while protecting your benefits. You get a 9-month Trial Work Period where you can earn any amount without affecting benefits, followed by a 36-month Extended Period of Eligibility where benefits are only suspended in months you earn over SGA. Plus if your benefits end due to work, you have 5 years of expedited reinstatement rights if you need to go back on benefits. Might be better than switching to retirement.
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Lucas Lindsey
•I knew there was some kind of work program but had no idea about all these protections! This sounds much better than taking a permanent cut to switch to retirement. I'll definitely look into Ticket to Work. After 12 years on SSDI I'm nervous about risking my benefits, but knowing there's a safety net might give me the confidence to try working part-time.
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Sophie Duck
Bottom line: Stay on SSDI until your Full Retirement Age (67). At that point, your SSDI automatically converts to retirement benefits at the same amount. If you want to try working before then, use the work incentives designed for SSDI recipients (Trial Work Period, etc.) rather than switching to early retirement. The permanent reduction from taking early retirement almost never makes financial sense for someone already receiving SSDI.
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Lucas Lindsey
•Thank you all for the advice! I'm definitely going to stay on SSDI until 67 based on what everyone has shared. I'll check out both the Ticket to Work program and contact a WIPA counselor to understand exactly how I can safely try working part-time. Really appreciate all the detailed information!
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