Will My Disability Benefits Change When I Turn 65?
Jan. 6, 2025
Turning 65 is a milestone for many people, especially in the context of healthcare and retirement planning. However, for those receiving disability benefits in North Carolina, this age can also raise important questions about how their benefits might change.
As an experienced SSDI benefits attorney in Raleigh, North Carolina, I'm dedicated to protecting your rights and your benefits. If you're concerned about your disability benefits, don't hesitate to contact me at Lloyd King Law Firm PLLC. Here, we'll explore the potential changes in disability benefits you can expect when you turn 65.
How Do Disability Benefits Work?
Social Security Disability Insurance (SSDI) is a federal program that provides benefits to individuals who have worked long enough and paid Social Security taxes, but are no longer able to work due to a disability.
SSDI is based on your work history, and your benefits amount is determined by the number of credits you've accumulated through working and paying taxes. You must be unable to engage in substantial gainful activity (SGA) for at least 12 months due to a medical condition to qualify for SSDI.
Supplemental Security Income (SSI) is another federal program but is based on financial need rather than work history. SSI is designed to assist those who have limited income and resources.
To qualify for SSI, applicants must meet both medical and financial criteria. SSI can be a critical lifeline for individuals with disabilities who have little or no income or work history. Reach out to an experienced SSDI benefits attorney for additional information.
The Impact of Turning 65 on SSDI Benefits
For SSDI recipients, age 65 is significant because of the transition from disability benefits to retirement benefits under Social Security. When you turn 65, your disability benefits generally stop being classified as “disability” benefits and are instead categorized as “retirement” benefits.
Here’s what this means:
No loss of benefits: SSDI recipients don’t lose their monthly payments when they reach 65. The amount of money you receive doesn’t change. SSDI is essentially replaced by Social Security retirement benefits, but these are calculated based on the same formula as SSDI, so the payment amount remains the same.
Automatic transition: There’s no need for the beneficiary to take any action when they turn 65. The transition from SSDI to Social Security retirement benefits is automatic. However, it's crucial to note that the Social Security Administration (SSA) may not always send a formal notification, so you should monitor your benefits and check for any discrepancies when you reach 65.
Eligibility for medicare: One significant change at age 65 for SSDI recipients is eligibility for Medicare. While SSDI recipients under 65 are eligible for Medicare after 24 months of receiving disability benefits, individuals 65 or older become eligible for Medicare regardless of how long they've received SSDI benefits. This can help reduce healthcare costs, which can be particularly important for individuals living with long-term disabilities.
Retirement benefits vs. disability benefits: Even though your benefits will be categorized as retirement benefits at 65, it's important to remember that your eligibility for Medicare and your payment amounts won't change. The key difference is that your benefits are no longer classified under the SSDI program, but under the Social Security retirement program.
For those receiving Supplemental Security Income (SSI), turning 65 can have a different impact, especially because SSI is needs-based. Working with a qualified SSDI benefits attorney can help you better understand this impact.
The Impact of Turning 65 on SSI Benefits
At 65, an individual may still receive SSI if they meet the financial and medical eligibility requirements, but their situation will be assessed under different rules.
Financial considerations: Once you turn 65, your financial situation will be reevaluated under the SSI program. While there’s no specific income limit that applies exclusively to seniors, the Social Security Administration will assess your income, resources, and living arrangements to determine whether you still qualify for SSI. In particular, some resources that were once counted toward SSI eligibility may be treated differently once you reach 65.
Income limits: SSI recipients under 65 have strict income and asset limits that can affect eligibility. After 65, however, the SSA applies different rules, which can allow for greater flexibility. For example, some states have higher income or asset limits for seniors than they do for younger individuals. In North Carolina, individuals 65 or older might be able to retain more assets or earn additional income without jeopardizing their SSI benefits.
Medicaid eligibility: SSI recipients, including those over 65, may qualify for Medicaid if they meet the income and asset criteria for the program. In North Carolina, Medicaid eligibility for seniors is determined by income, and being an SSI recipient can make it easier to qualify for Medicaid. Medicaid can help cover healthcare costs not covered by Medicare, such as long-term care or additional services.
State assistance programs: North Carolina offers additional state programs for low-income seniors with disabilities, such as the North Carolina Senior Citizens’ Health Insurance Program, which can assist individuals who are aging into retirement. These programs may be available to those who are also receiving SSI benefits, and they could help cover healthcare costs or other essential services.
Turning 65 marks a pivotal moment for SSI recipients, requiring careful consideration to work through this transition smoothly. Consider reaching out to me, Lloyd King, Attorney at Law, to work with an SSDI benefits attorney who can help with this transition.
Changes in Healthcare Coverage
For those receiving SSDI or SSI benefits, healthcare coverage is a major concern, and age 65 can significantly alter healthcare options.
Medicare eligibility: As previously mentioned, turning 65 automatically qualifies individuals who have received SSDI for Medicare. However, if you're receiving SSI, you may already be eligible for Medicaid, which can be combined with Medicare for a more comprehensive healthcare plan.
Medicare parts A, B, and D: Medicare has several parts, and each part covers different aspects of healthcare:
Part A covers hospital insurance, including inpatient care in hospitals, skilled nursing facilities, hospice care, and some home health services.
Part B covers outpatient care, including doctor visits, certain preventive services, and other medically necessary services.
Part D covers prescription drug coverage.
If you’re already receiving SSDI, you likely have Medicare Part A and Part B. Once you reach 65, these benefits continue, but you may need to review your options for Part D (prescription coverage) or other supplementary plans to make sure adequate healthcare coverage.
Medicaid and Medicare coordination: For people who qualify for both Medicaid and Medicare (a group known as "dual eligibles"), Medicaid can assist in paying for services not covered by Medicare. North Carolina has specific programs for dual eligibles, which can help fill in the gaps in Medicare coverage. This could include long-term care services, prescription medications, and other medical needs.
In addition to these healthcare changes, you may also potentially see an impact on your work and earnings.
Impact on Work and Earnings
One consideration for many individuals approaching age 65 is whether they plan to continue working or not. This can affect both SSDI and SSI benefits.
SSDI work incentives: If you're receiving SSDI, you may have concerns about working and how it could impact your benefits. Fortunately, SSDI has work incentives that allow you to earn a certain amount of money each month without losing your benefits. These incentives include the Trial Work Period (TWP), which allows you to work for up to nine months without affecting your SSDI benefits, as long as you continue to meet the medical requirements for disability.
SSI work and age considerations: For SSI recipients, earning income may reduce the amount of your benefit, as SSI is means-tested. However, the rules for how earned income impacts SSI payments differ based on your age, work history, and whether you qualify for any state assistance programs. North Carolina may have additional resources that allow seniors to continue working while still receiving some level of assistance.
Social security retirement benefits: Once you turn 65, you may be eligible to begin receiving Social Security retirement benefits, even if you continue working. The rules for receiving both SSDI and retirement benefits vary depending on your earnings, so it’s important to consult with the SSA to understand how working after age 65 will affect your overall benefit amount.
Turning 65 is a major milestone, and for those receiving disability benefits in North Carolina, it’s important to understand how this age change may affect benefits. The financial eligibility rules may change, and it’s important to be aware of how your income and resources will be assessed. Working with an SSDI benefits attorney can help.
Contact an SSDI Benefits Attorney Today
If you're nearing the age of 65 and you're concerned about your disability benefits, don't hesitate to contact Lloyd King Law Firm PLLC. I serve clients throughout Raleigh, Roanoke Rapids, Fayetteville, and Greensboro. Contact me today to schedule a consultation.