Figuring out finances is not always an easy thing. Add in the need to navigate the intricacies behind the rules for benefits from the government like Social Security disability benefits and this already difficult endeavor can seem unmanageable.
This is particularly true for those who are trying to plan for retir\ement and working to get their finances in order so they can enjoy their sunset years.
Rules for Social Security disability benefits prior to retirement have changed
Social Security disability benefits generally convert to retirement benefits when the recipient reaches retirement age. In the past, it was possible to withdraw the application for these benefits before the conversion to retirement benefits went into effect. This was beneficial because it allowed the retirement benefits to continue to grow by 8 percent until the recipient reached 70 years of age. At this point, as noted in a recent publication by Investment News, the recipient would switch over to retirement benefits and reap the rewards of maximum retirement benefits.
The ability to make this shift ended in 2015. At that time, the Social Security Administration changed how it handles these requests. It began taking these requests as a request to withdraw every benefit, including the disability benefits. When disability benefits are withdrawn, the recipient must pay back all the benefits received — clearly not the intention of the beneficiary in this instance.
This change can make it difficult for those receiving Social Security disability benefits to manage their retirement finances. Those who are either attempting to apply for the benefits for the first time or trying to figure out how to manage disability benefits and retirement are wise to seek legal counsel. An experienced Social Security disability attorney can review your situation and provide guidance to help better ensure success.