Will taking early SS retirement affect my pending SSDI application and backpay?

Yes, you can take early retirement while waiting for SSDI, but there are important things to understand. If your SSDI is approved, SSA will pay you the difference between your reduced retirement benefit and what you should have received in SSDI. Your SSDI payment will essentially replace your reduced retirement benefit. However, after you reach Full Retirement Age, your benefit will remain at that reduced amount permanently - this is called the "RIB-LIM" rule (Retirement Insurance Benefit Limitation). You don't get to go back to your full retirement amount after SSDI ends at FRA.

i did this exact thing last year. took early retirement at 62 cuz my ssdi was taking 4ever!!! got approved 5 months later and they did some weird calculation thing. got backpay but it was less than i expected. something about offset from the retirement $$ i already got.

I'm in a similar boat and FREAKING OUT about money while waiting!!!! Did your lawyer explain if this affects your chances of approval? I'm terrified of doing ANYTHING that might hurt my case. My aunt's neighbor's SSDI was denied because she tried working part-time while waiting. Not the same thing but still worried!!

Listen, this is a common situation, so don't panic. Here's what happens: 1) You take reduced retirement now, 2) If SSDI is approved, they'll calculate your disability benefit, 3) They'll subtract what you've already received in retirement from your SSDI backpay, 4) Your monthly benefit will increase to the SSDI amount, 5) BUT - and this is important - when you reach full retirement age, your benefit will be permanently reduced because you took early retirement first. This is what they call the "RIB-LIM" rule. I recommend calling SSA directly to discuss your specific situation before making a decision. It can affect your long-term benefits by thousands of dollars over your lifetime.

My sister went through something similar!! She took early retirement while waiting for disability and when she finally got approved they did adjust her payment but there was some permanent reduction. Something like $270 less per month than if she had waited. Thats a lot of money over the years!! But she needed to pay her mortgage so didn't have a choice.

I've been down this EXACT road, and I have to tell you - CALLING SSA IS A NIGHTMARE right now. I spent WEEKS trying to get through to someone who could actually explain how this would affect my long-term benefits. Always busy signals or 3+ hour wait times just to get disconnected! I finally used a service called Claimyr (claimyr.com) that got me through to an agent in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The SSA agent explained exactly how my early retirement would affect my SSDI and ran the calculations for my specific situation. For me, it made sense to take early retirement while waiting, but your numbers might be different.

To answer your follow-up question about the reduction amount: The reduction isn't necessarily the same 30% as normal early retirement. The calculation is complex and based on several factors including your FRA, exact age when you took early retirement, and your PIA (Primary Insurance Amount). This is why getting accurate information from SSA about YOUR specific situation is crucial. The reduction will be permanent, but the exact amount varies case by case.

Does the same thing happen if you take spousal benefits while waiting for SSDI?? My husband's benefit is what I was thinking of applying for while I wait!

One additional point that hasn't been mentioned: If your SSDI benefit amount is substantially higher than your reduced retirement benefit, taking early retirement might still make financial sense despite the permanent reduction at FRA. For example, if you need the income now and your SSDI would be $500 more per month than your reduced retirement, you might come out ahead even with the permanent reduction later. It's essentially a cash-flow decision based on your current needs versus long-term maximum benefit. This is why speaking with an SSA representative about your specific numbers is so important.

Thank you everyone for all this information. I had no idea about this permanent reduction rule. I'm going to try to speak with someone at SSA to get specific numbers for my case before deciding. Based on what everyone's saying, it sounds like I need to weigh immediate financial needs against the long-term reduction. Really appreciate all the insights!