Washington, DC - Social Security Matters by AMAC’s Certified Social Security Advisor C.J. Miles - Association of Mature American Citizens:
QUESTION: I just turned 45, so I thought it would be a good idea to take a look at my statement of estimated benefits. As expected, it showed my different estimated benefit amounts for early retirement (62), full retirement age, and delayed retirement (70). However, what I was really confused about was why the estimated benefit amount for disability was larger than the estimated amount for full retirement age. Is this a mistake?
ANSWER: No, that is actually not a mistake. You may or may not know that Social Security is based on your highest 35 years of earnings. The statement you are looking at has to make estimates of your earnings for the next 17 years. However, there is a subtle nuance to the phrasing of the disability payment amount – it says if you were disabled “today” your payment would be…That is because they are literally telling you how much you would get if you were to be disabled today; therefore, no estimates of future earnings would be needed. For example, let’s say you only actually have 30 years of qualified earnings. If you were full retirement age today, they would average in 5 years of $0 in your benefit amount. But if you became disabled today, they do not expect you to have as many years of earnings as someone in their 60s, so they use a different calculation for determining your disability benefit amount.
QUESTION: I wanted to apply for Social Security at 62, but quickly realized that the reduced benefits were too low and I needed to work until age 66 for full benefits (I also do not have 35 years of earnings). Now I am 63 and single and got so ill, I had to leave my job. I do not have an official diagnosis yet, but I heard I may be able to get disability. My estimated benefits statement shows that my disability payment would be higher than my age 63 old-age benefit, which is great. However, there’s a 5-month waiting period and without an official diagnosis, I don’t know if I would get approved. Not to mention, what am I supposed to do for money for five months? Should I just give up on trying for disability? Are there any options for someone like me?
ANSWER: It sounds like you have done your homework and are already aware of a lot of important information. You are also correct that an official diagnosis is helpful. If you have not already, you should read Social Security’s disability definition and listing of impairments to get a better idea of whether or not you would be approved. You may access that information at the Web site: http://www.ssa.gov/disability/. This will give you an overview and further links to how Social Security determines if you are disabled. You should also review the listing of impairments. It can take 3 to 6 months for a disability application to be approved or denied, and one major factor affecting this time period is whether or not your diagnosis is on this list. If your situation is on the listing of impairments, your application will be processed more quickly; however, if it is not listed, it is not an automatic denial. It just takes longer to get approved because more research and documentation is needed.
With that being said, if you think you eligible for disability, it really could not hurt to apply because the only time a lawyer would get involved is when you appeal a denial. The application will take about an hour or so. The extra work involved in applying for disability is really in gathering the necessary paperwork and medical documentation. Also keep in mind that the more quickly you provide documentation, the faster your application will be processed.
In the meantime, you were concerned about having no income. When you apply for disability, you will be asked if you would like to receive old-age benefits while waiting for your disability application to be processed. That will at least give you some income while you wait, and you will not have to choose one benefit or the other. You can apply right away and answer the questions to the best of your ability (such as why you cannot work, how much you were getting paid, when was the onset of the disability, description of disability, etc.). Other questions will be the same as those for a regular Social Security application. Once your application is complete, they will tell you what other documentation you need to move forward, which would be related to the disability and old-age benefits. At the very least, your application will start being processed while you gather the information requested.
To ask a question about Social Security contact AMAC’s C.J. Miles at This email address is being protected from spambots. You need JavaScript enabled to view it..
