Retirement and Social Security Disability

 In 2020, the full retirement benefit age is 66 years and 2 months for people born in 1955. The age will periodically increase to 67 for individuals born in 1960 or later. 

Early retirement benefits will continue to be available at age 62, but they will be reduced more. When the full-benefit age reaches 67, benefits taken at age 62 will be reduced to 70 percent of the full benefit, and benefits first taken at age 65 will be reduced to 86.7 percent of the full benefit. Also, for individuals who defer retirement beyond their retirement age, Social Security will pay a 'bonus' up to age 70.

If you intend on filing for social security disability, it is suggested to file for disability before filing for early retirement. Why? 

First and foremost, if you may be eligible for SSDI, there is no point in waiting. In fact, if you wait more than a year from when you last worked, you will start losing money could receive in "retroactive benefits" as you are only able to claim back up to 1 year in back pay from the time you file your application. 

Second, when you file for early retirement, you are not exactly declaring that you cannot work due to a disability. I stress the importance with my clients to be consistent in the overall 'statement' to Social Security when applying for disability. If you file for early retirement before you file for disability, you may eventually have to explain why you didn't apply for disability first. A good example would be if you received a new medical diagnosis after applying for early retirement that elevated the severity of your disability.