As a Lockheed Martin employee, you have worked hard for your future retirement income. That income is typically a combination of your pension, 401k distributions, and Social Security retirement benefits, of course there could be other streams of income as well, but those are the most common. As life happens, it’s possible that you can become disabled due to a sickness or injury. What most people ask is if they can draw both Social Security retirement benefits and Social Security Disability benefits at the same time?
The simple answer is no, but we will dig further into the this. First, let’s define what Social Security Disability (SSDI) is. SSDI is an entitlement program which is available to anyone who has paid into the Social Security system for at least ten years. SSDI benefits are for workers who at one point could work but are unable to work anymore because of a disability or a serious ailment. To qualify for SSDI, a person needs to have a serious disability that makes it impossible for them to work, as well as enough work credits from their work history. People on SSDI automatically qualify for Medicare after a two-year waiting period from time SSDI begins.
If you are younger than your Social Security full retirement age, then SSDI will pay out your full retirement benefits until you qualify to draw them. Once you reach full retirement age, the S Social Security Administration (SSA) will automatically start your retirement benefits and cease your SSDI payments.
As an example, suppose that, at age 60, you suffer a back injury leading to a disability. You are approved for SSDI benefits, and you begin drawing an amount equal to your full retirement amount. When you reach age 62, nothing changes; you continue to draw your full SSDI amount. Once you reach your full retirement age, the SSA swaps you from SSDI to your regular retirement benefits. This occurs automatically, so you will not see a break in your benefits and do not need to do anything to ensure this happens.
Please note, that if the SSA approves you for SSDI, there is generally a five-month waiting period before your benefits will begin. The first benefit payment will be in the sixth full month after the date they found your disability began. However, there is no waiting period if your disability results from amyotrophic lateral sclerosis (ALS) if you were approved for benefits on or after July 23, 2020.
Hopefully, this will be information you will never need to use, but it is good information to know. Our team of Lockheed Martin experts are standing by for you to give us a call to schedule a complimentary consultation to discuss this or any financial planning relating topic you choose. You can reach us at 817-210-3444 or by clicking here.
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This blog is being provided and sponsored by Strittmatter Wealth Management Group, LLC. Lockheed Martin and its subsidiaries do not endorse, recommend, or make representations with respect to any information, advice, services, or products discussed in this blog.
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