Answer: You should apply for disability benefits. If you take early retirement at age 62, your monthly benefit check will be reduced by 20%. For example, if your full monthly retirement benefit is $950, by taking early retirement at age 62 you will be entitled to only $760. Furthermore, when you take early retirement your monthly benefit amount does not go up when you turn 65. It remains at the early retirement level, plus annual cost of living increases. On the other hand, if you apply for disability benefits and are found disabled you will be entitled to receive your full retirement benefit amount even though you have not reached age 65. When you turn 65 your disability benefits will convert to retirement benefits, but at the full retirement benefit rate. By applying for disability benefits you may also become entitled to Medicare sooner.
Question: My husband is disabled and receives a monthly disability check for $840 from Social Security. Our two children and I each receive $140 per month from his Social Security account. Our oldest child turns 18 in August and we have been told by Social Security that he will no longer be eligible for benefits. Does this mean the total our family receives each month will be $140 less?
Answer: No. As long as you have one
child under age 18, your family continues to be entitled to the Maximum
Family Benefit, which in most cases is about 150% of the primary insured's
(in your case, your husband's) monthly entitlement. Since your husband
gets $840 a month, the other eligible family members get a total of half
that, which in your family's case is $420. Right now that $420 is split
three ways between you and your two children. After your older child turns
18 and is no longer eligible, the family benefits will be split between
only you and your younger child. As a result each of your monthly checks
will increase to $210.