Fast Facts & Figures About Social Security, 2020

Fast Facts & Figures About Social Security, 2020

Did You Know That… 69.1 million people received benefits from programs administered by the Social Security Administration (SSA) in 2019.

Ask Bob: Will Working Increase My Social Security Disability Payment?

Adviser Brian Vosberg explains how a reader's part-time work can impact her Social Security Disability payment.
Author:
Publish date:

Question

I receive $1,260 in Social Security Disability Insurance (SSDI) and work part time. Will my work contribute to a higher Social Security payment when I’m 65?

Answer

To originally qualify for Social Security disability benefits, says Brian Vosberg, president of Vosberg & Associates and author of The Complete Retiree's Guide to Social Security: Powerful Strategies to Maximize Retirement Benefits and Get the Most From Your Money, you need to have earned a certain number of credits prior to your disability.

“This is generally 40,” he says, “but can be less depending on your age when the disability occurs.” Your earning history when working and paying into Social Security determines what you are entitled to (your primary insurance amount) at your full retirement age (FRA). Your disabled worker’s benefit is generally equal to the primary insurance amount. When you reach full retirement age the monthly payment converts from disability income to retirement income.

“I’m assuming that you are referencing age 65 because that used to be the full retirement age,” says Vosberg. However, the full retirement age has gradually increased over the past few years. “If you were born in 1955, your full retirement age is 66 and 2 months and it slowly increases to age 67 for those born after 1959,” he explains.

If you are paying into Social Security while you are working, it has the potential to increase your primary insurance amount. “Social Security uses a formula that looks at the highest 35 years of earnings to determine this number,” he says. “There are several variables that must be looked at, but it is possible to have a higher benefit in the future if you are able to increase the primary insurance amount.”

Got questions? Get answers!

Email Robert.Powell@maven.io

Question

I receive $1,260 in Social Security Disability Insurance (SSDI) and work part time. Will my work contribute to a higher Social Security payment when I’m 65?

Answer

To originally qualify for Social Security disability benefits, says Brian Vosberg, president of Vosberg & Associates and author of The Complete Retiree's Guide to Social Security: Powerful Strategies to Maximize Retirement Benefits and Get the Most From Your Money, you need to have earned a certain number of credits prior to your disability.

Member Exclusive

Get Access to Our Exclusive Content