BenePLAN Tip: What You Should Know to Transition to Social Security Retirement Benefits

Brian Forsythe, Benefits Specialist, Resource Partnership

If you are receiving SSI or SSDI benefits, you may have questions about what happens when you retire. When you reach full retirement age, Social Security converts your SSDI or SSI payment to a Retirement payment without you having to do anything. The monthly amount you will receive changes because Social Security calculates retirement income differently than it does disability income.

SSDI is figured from your last 10 years of work before you became disabled. Retirement is figured from the highest paying 30 years of work. To find out how much you would receive at retirement, talk to your claims representative at your local Social Security Administration office.

SSI is figured upon an individual’s disability status and financial need. If you receive SSI, you will receive SSI Retirement when you reach full retirement age. Your monthly amount becomes fixed; in 2008 this amount is $765.82 for individuals living alone.

If you receive SSDI you are eligible for early retirement at age 62, but you are better off financially if you continue on SSDI until you reach full retirement age. Taking early retirement would reduce your monthly benefit by approximately 24%.

When you reach full retirement age, you will no longer need to follow any work rules; you can earn as much as you like without risking your social security payment. One important point to remember: if your annual income exceeds approximately $24,000 per year, then 85% of your Social Security income will be considered taxable income.

Your full retirement age depends on your birth date. To find out your full retirement age and figure your retirement income, visit Social Security’s web site at www.ssa.gov and click “Plan your retirement” under the “Retirement” heading.

To learn about Social Security Retirement Benefits, contact Brian Forsythe, Resource Partnership Benefits Specialist at brian@resourcepartnership.org or 508-647-1722 ext. 14.

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