Two magical points in Social Security: 18 years old and 65 years old
Posted in Social Security
One of the toughest things to explain to people regarding Social Security is helping them understand that there are two points where Social Security takes significantly different turns. One, is when you turn 18 and the other is when you turn 65 (or 66 or 67 depending on when you were born). Here’s why:
The 18th YEAR
1) Child to Adult
Under the Social Security Regulations, a person is considered an adult at the age of 18. As a result, this means that your child is no longer considered a child under Social Security standards.
2) Benefits may end right away MAYBE
Most people don’t realize that the standards for disability is different for adults than it is for children. So if your child is getting disability benefits, you shouldn’t be surprised if Social Security makes the decision to either cut off your child’s benefits or review the file to determine if the child should continue receiving benefits at 18.
3) Benefits may continue
Under some circumstances, the benefits may continue. If the child is still in high school, the benefits may continue for a brief period. In addition, if Social Security determines the child meets the criteria for a disabled adult, the benefits may be continued as well.
4) Rep Payee Stops
Depending on the condition your child, once they turn 18, Social Security may determine that the child has the ability to manage their own funds. As a result, if a Representative Payee had previously been assigned, they may discontinue the Representative Payee services.
5) Parents may lose rights
The toughest part of the process is usually for the parents who have been used to having complete access to their child’s information. However, once the child has been determined to be an adult, the access to that information may ceases..
The 65th YEAR (or 66 or 67)
1) Disability and retirement is from the same pool of money
Most people don’t realize that once the person reaches retirement age (65, 66, or 67), the money you receive for disability automatically changes to retirement. Same money, different name.
2) You can apply for Disability even if you retired early
Some people decide to retire early but it is important to remember that if you retire early, you may be eligible to receive disability. It’s important to remember that when you retire early, you typically will only receive 80% of what you would have received had you reached full retirement age. Applying for disability before you reach retirement age may give you the ability to apply for the remaining 20%.
3) No more extra money
Sometimes people who retire think that they can get extra money by applying for disability. As stated above, if your application for disability benefits is for the period of time when you are eligible for retirement benefits, you are probably not going to get anything more than you have.
4) Disability reviews stop
Most importantly, the reviews stop. As most people know, Social Security can review your benefits to determine if you are still disabled. Once you hit retirement, it stops.
It’s tough because some people don’t realize that Social Security has different cut off points during the course of the Social Security Disability process. Understanding them, may make a difference.
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