Pretty much no matter who you are, retirement is challenging, emotionally, socially and financially. So, many Americans either keep working for as long as possible after they turn 65. But, a large percentage of people don’t have that option, reports Mark Miller for the New York Times. Around four in ten working people leave their jobs before they turn 65, in many cases because they have a disability they did not foresee.
People with disabilities–be they physical or mental–too often struggle in retirement. Without the income they anticipated, they also tend to have less savings. They are forced to enroll early in Social Security. While they can get benefits at 62, they receive 30 percent less than they would if they waited until their full retirement age to collect benefits, let alone if they waited to age 70.
That said, people who lose their jobs because of a disability might be eligible for Social Security Disability Insurance (SSDI,) as are some 8.2 million people today. About 75 percent of them are over 50 and most live on little income. Income from SSDI, which today averages $1,582 a month, can make up some or much of the difference between what they collect from Social Security at 62 and what they would have collected had they waited until their full retirement age. SSDI keeps many of them from poverty.
As you might imagine, however, many people who seemingly would qualify for SSDI do not get it. Some don’t know to apply. Many apply but wait months, if not years, for a determination. There is a backlog of nearly 900,000 people. Of those who apply, two out of three are eventually denied benefits on the grounds that they can work.
The Trump administration appears to be planning to restructure SSDI eligibility requirements to make it even harder for people between 50 and 60 to qualify for benefits, based on their age. One expert projects that if this rule takes effect, as much as 30 percent fewer people over 50 will receive SSDI.
While SSDI did not go into effect until 1956, 21 years after Social Security was enacted, it was designed to help people 50 and older. Four years later, Congress expanded SSDI to cover people of all ages until they reach their full retirement age for Social Security benefits. The Trump administration’s possible plan would take us backwards.
SSDI benefits are calculated based on the full Social Security benefit people had earned at the time they stopped working. When they reach their full retirement age, they continue to get that benefit through Social Security. After receiving SSDI for two years, people qualify for Medicare.
Here’s more from Just Care:
- More than 1 million await Social Security disability decision
- Older workers likely to face severe cuts to Social Security Disability Insurance
- Social Security benefits do not meet the needs of most older Americans with disabilities
- Calls to Social Security are going unanswered
- Health care costs are devouring Social Security’s cost of living increase
