Once you reach a certain age, and if your physical abilities affect your ability to work, you may wonder if it is better to retire or go on disability. Retirement and disability are two different Social Security benefits that allow eligible people to obtain income. Retirement benefits are based on age and work history, while Social Security Disability Insurance (SSDI) benefits are determined by whether you have a medical condition that prevents you from working.
About Gade & Parekh, LLP
At Gade & Parekh, LLP, our disability lawyers help people from all over Northern California with their disability questions and concerns. We know how difficult it can be to compare retirement and disability benefits, especially when you’re not sure what your options are. We’re here to walk you through the basics so you can decide what comes next.
Difference Between Retirement and Disability
When you retire, you qualify to receive retirement benefits from Social Security. Once you hit retirement age, you can start receiving these benefits as early as age 62. SSDI allows you to obtain benefits if you qualify as disabled under the Social Security Act’s definition of disability. It doesn’t matter if you’re over the retirement age.
Essentially, the difference between retirement and disability is that retirement assumes you are able to work, while SSDI assumes you cannot work due to your condition.
SSDI Benefits or Retirement
Unlike retirement, you won’t see a reduction in your Social Security disability payments just because you start receiving them sooner. So, if you qualify for SSDI, your benefit amount will be what you would receive as a retirement benefit. This is much different than retirement benefits because if you decide to start receiving retirement benefits early, your monthly benefit will be permanently reduced.
Additionally, even if you start receiving SSDI benefits before your full retirement age, you’ll automatically be switched over to retirement benefits once you reach that age, and your benefit won’t be reduced. Over 8.6 million people received disability compensation in 2024. This amounted to payments of over $12.9 billion. Eighty-three percent of the beneficiaries were disabled workers.
SSDI Laws Regarding Qualifying for Benefits
SSDI is bound by federal regulations when determining who qualifies as disabled; 20 CFR § 404.1520 specifically deals with how we determine if your condition affects your ability to work. If your condition meets the duration requirement and prevents you from doing substantial gainful activity (SGA), then you may qualify as disabled. The duration requirement means your condition must last 12 months straight or result in death.
Therefore, if you are able to work, even if it is not to the level that you want, you’re probably not going to qualify for SSDI. This Social Security Administration (SSA) decision is made on a case-by-case basis and depends on your specific limitations caused by your medical condition. They also consider what other work you could do, even if you are unable to return to the work you’ve done in the past.
When Retirement May Be Better
In some cases, retirement may be a better option. SSDI benefits do eventually convert to retirement benefits. So, if you are only a couple of years away from retirement age, it may be easier to file for retirement. Another reason could be that your medical condition doesn’t qualify as a disability. If you are only a few years away from retirement and you’re still working, filing for retirement might be your most beneficial option.
Typically, SSDI benefits take longer to process than retirement benefits, even more so if you need to file an appeal. So if you need money as soon as possible and you’re not sure if you’ll qualify as disabled, filing for retirement may be your better option. Just keep in mind that if you file early, your monthly retirement benefit will be less than if you waited until your full retirement age.
When Disability May Be Better
If you’re many years away from retirement age and have a medical condition that stops you from working, filing for SSDI may be a better option. With SSDI, you won’t be facing a reduced monthly benefit like you would with early retirement.
Depending on your condition, you may also qualify for Medicare once your SSDI benefits have been processed. For some, this makes SSDI the better option over retirement. Social Security hearings are held at the local office, one of them being located at 8581 Folsom Blvd., Ste. A, Sacramento, CA 95826.
FAQs for Sacramento Social Security Disability Lawyers
Q: What Are the Disadvantages of Going on Disability?
A: There are tradeoffs to living on disability benefits. It can take time to get them while your application is processed, and there’s no guarantee you’ll be approved. They may not come close to what you were used to earning, and there are restrictions on how much you can work while on them. You’ll also face reviews by the Social Security Administration from time to time to prove your condition still prevents you from working substantially.
Q: Who Pays More, Disability or Retirement?
A: Most of the time, SSDI pays higher benefits than early retirement, as disability benefits are computed at your normal retirement rate, whereas early retirement benefits are permanently reduced. If you delay until full retirement age, then they will generally be about the same. Timing, eligibility, and whether or not a disability claim is approved are the biggest factors.
Q: Does a Torn Rotator Cuff Qualify for Disability?
A: Yes, torn rotator cuffs are considered when determining disability. However, it must cause significant limitations with work-related activities for at least 12 months to qualify. The SSA will consider range of motion, strength, pain, and response to treatment. Doctors typically use medical records, imaging, and notes about functional limitations in these cases.
Q: What Should I Say to Get Approved for Disability?
A: There are no magic words that will obtain approval. Be truthful, specific, and consistent in your explanation of how your condition impacts your daily life and ability to work. Explain your limitations, including what you can’t do and what you can do. Make sure what you say matches your medical records. Consistency and credible supporting documentation are much more valuable than words alone.
Hire an SSDI Lawyer With Gade & Parekh, LLP
If you are trying to decide between disability and retirement, Gade & Parekh, LLP, can help you with your SSDI case. An SSDI attorney at our firm understands the law. Reach out to us today for more information.