When you suffer a disabling injury or illness, you want to collect all the benefits and funds you are entitled to. After all, your life will never be the same, and you need to secure your future as best you can. Disabled individuals who are nearing retirement age may be wondering, “Can I collect Social Security retirement and disability benefits in Arkansas at the same time?”
While this may seem like an easy question to answer, the truth is that there are many variables that can affect your ability to collect benefits after a disability. Because of these variables and factors, it is important to consult with an experienced SSDI lawyer immediately. Your attorney will be able to review the details surrounding your case to help you collect all the benefits you deserve.
The simplest and most straightforward answer to this question is NO. Unfortunately, the vast majority of disabled Americans, including Arkansans, cannot receive both Social Security retirement benefits and disability benefits at the same time. If you already qualify for SSDI benefits, then these benefits will be converted to retirement benefits when you reach full retirement age.
There is an exception to this rule, however, which we will cover in this article. Keep reading to learn how you might be able to collect disability and retirement benefits at the same time.
Social Security disability insurance benefits exist to help Americans who suffer from a disabling injury or illness, but who cannot yet draw from their retirement benefits. If you are unable to work, but are not eligible for retirement, you need money now. The SSDI program essentially provides “early retirement” funds and benefits to individuals who are unable to work due to disability.
Once an individual reaches retirement age, they are able to draw from the full amount of retirement funds available to them. SSDI is no longer needed and simply converted to retirement benefits. In this way, both programs work together to provide much-needed benefits to disabled Americans, including Arkansans, regardless of their age.
There is one major exception for collecting both retirement benefits and SSDI benefits in Arkansas. If you took early retirement at the age of 62 before becoming disabled, you may qualify to collect both.
If you drew less than a full monthly retirement benefit before being approved for disability benefits, you will get the difference between the amounts. In addition, your lack of income during this time would not count towards your retirement benefits. This can be beneficial for many disabled individuals nearing retirement age.
In order to qualify for this exception, however, you must clearly establish that your disability occurred before you began taking early retirement benefits. If the Social Security Administration determines that your disability didn’t start until after retirement, they will deny your claim for SSDI benefits.
Remember that your full retirement benefit is based on the average monthly income in your 35-highest earning years.
Some individuals may benefit from taking early retirement, especially if they are disabled. If you are severely impaired and believe that you will qualify for disability benefits, you may want to consider this route.
To start, you need to apply for Social Security disability benefits to protect your filing date and establish your disabling condition. Once you have done this, you can then apply for early retirement. The SSA will accept your early retirement, as long as you meet the credit requirements. Opting for an early retirement means that you will only receive 75 percent of your full retirement benefit amount. However, once your SSDI claim is approved, you will begin receiving the full amount of retirement, as well as back pay. In addition, you will be able to receive the full amount of retirement for the rest of your life.
There is a risk, however. If you collect early retirement but are not granted disability benefits in Arkansas, you may be stuck collecting less than your full retirement for the rest of your life.
In most cases, if you are already receiving SSDI, you’re better off waiting to retire until after 65. However, for some individuals who are collecting workers’ compensation along with SSDI, early retirement benefits may be greater.
Before taking early retirement or applying for SSDI benefits, it is important to speak to an experienced SSDI lawyer.
Many people who receive Social Security Disability Insurance benefits still want to work, whether to supplement their income, test their ability to return to the workforce, or simply to stay active. The good news is that the Social Security Administration allows some work activity while you receive SSDI. However, strict rules govern how much you can earn and how long you can work before it affects your monthly benefit.
Yes, you can work while you receive SSDI, but Social Security places limits on how much that work can pay before it changes your claim. Social Security understands that many disabled workers want to return to the workforce, so the program includes ways to test that ability without automatically losing benefits. The key is understanding how much you can earn, for how long, before Social Security treats your work as proof that you are no longer disabled.
Social Security also offers work incentives that let existing SSDI recipients test their ability to return to work without immediately losing benefits. The Trial Work Period allows you to work and keep your full SSDI payment for nine months, regardless of how much you earn, as long as those months fall within a rolling sixty-month window. Once you exhaust the Trial Work Period, you enter a thirty-six-month Extended Period of Eligibility, during which you can still receive a benefit for any month your earnings fall below the substantial gainful activity limit.
Self-employment complicates this analysis further. Rather than looking only at net profit, Social Security applies specific tests to determine whether your work in a business you own amounts to disqualifying work activity, including whether you provide significant services to the business, whether your work compares to what an unimpaired person in your community would do, and whether the value of your work exceeds the current earnings limit even if you do not withdraw that value as cash. Farmers, contractors, and small business owners throughout central Arkansas who continue working in some capacity after a disabling injury or illness should discuss these tests with an attorney before assuming that a lower net income automatically protects their SSDI claim.
Whether Social Security considers you disabled comes down to a work-and-earnings test called Substantial Gainful Activity, or SGA. If your countable monthly earnings rise above the SGA threshold, Social Security may decide you are capable of full-time work and no longer meet the definition of disability. The figures represent gross earnings, before taxes and most payroll deductions, and Social Security adjusts them most years to reflect changes in the national average wage index.
The rules apply differently depending on where you stand in the process. If you are applying for SSDI for the first time, working above the SGA limit can result in a denial at the earliest stage of review, often before Social Security ever examines your medical records. To qualify, you generally must show a twelve-month period, or an expected twelve-month period, of impairment paired with earnings below SGA, unless the work qualifies as an unsuccessful work attempt or your countable earnings are reduced by impairment-related work expenses. If you already receive SSDI, the Trial Work Period and Extended Period of Eligibility give you more room to attempt work without automatically losing your claim, but you remain responsible for reporting your earnings to Social Security every month.
Whether you are filing your initial application or already collecting monthly benefits, the way Social Security counts your income, and the timing of that income can make the difference between keeping your benefits and losing them. At Rainwater, Holt & Sexton, our SSDI attorneys regularly help clients track their earnings, understand which work incentives apply to their situation, and report income correctly so a part-time job or a return-to-work attempt does not put the benefits they depend on at risk.
Unlike SSDI benefits, Supplemental Security Income (SSI) payments do not automatically convert to retirement benefits when you reach the age of retirement. SSI is funded by federal taxes and is available for low-income elderly and disabled Americans. To continue to receive SSI payments, however, you must apply for all other cash benefits you may be entitled to receive, including SSDI and retirement.
Yet, unlike SSDI, you can receive both SSI and retirement benefits at the same time in Arkansas. This means that your overall monthly benefit amount will stay the same when you hit retirement. Some of this money will come in the form of retirement benefits, and some will come from SSI benefits. Your disability attorney can help you through this process and ensure that you receive all the benefits you are entitled to as you near retirement.
To learn more about SSI benefits and eligibility, we can help.
If you are nearing retirement, you might not know what to do to collect all the benefits to which you are entitled. Fortunately, a Social Security benefits lawyer can help. Your attorney will be able to review your case and determine the best legal action for you. In some cases, you might be able to collect multiple benefits for disability and retirement in Arkansas.
No matter what – you can rest assured knowing that you are getting all the disability and retirement benefits you’re entitled to.
A Social Security benefits lawyer will take your case and gather the medical evidence necessary to win your case. This may include additional testing, examinations, and other professional evaluations. Your attorney will also help you get ready for any hearings and ensure that your case has the best chance of success.
Without an SSDI benefits lawyer on your side, you might not collect the benefits you deserve – and need.
Collecting both Social Security retirement and disability benefits in Arkansas can be complex, and without an attorney on your side, you may not get the benefits you deserve. At Rainwater, Holt & Sexton, our SSDI attorneys will examine your injuries, your disabilities, and your financial situation to determine the best way to proceed as you near retirement.
With offices throughout Arkansas – Little Rock, Springdale, Conway, Hot Springs, Bryant, Jacksonville, and Jonesboro—our Arkansas SSDI lawyers are easily accessible from the moment you need us. Contact Rainwater, Holt & Sexton Injury Lawyers today. Fill out a free contact request form, which only takes a minute, or simply dial (501) 868-2500 and tell us your story.
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