Retirement might feel like the last thing on your mind when you're focused on managing disability benefits day to day. But whether you're receiving SSI, SSDI, or both, understanding what happens to your benefits as you approach retirement age—and how to plan for it—can make a real difference in your financial security down the road.
In this article, we'll cover:
- What happens to SSDI when you reach retirement age
- How SSI benefits work in retirement
- Whether you can save for retirement while on disability benefits
- ABLE accounts and other savings strategies that protect your benefits
- How Social Security retirement benefits are calculated for disability recipients
- Practical steps you can take now to prepare for the future
What Happens to SSDI at Retirement Age
If you receive SSDI, your benefits will automatically convert to Social Security retirement benefits when you reach your full retirement age (FRA). For most people receiving SSDI today, full retirement age is 67. The good news is that your payment amount generally stays the same—Social Security simply reclassifies your disability benefit as a retirement benefit. You don't need to apply or take any action for this to happen.
One important thing to understand is that the years you spent on SSDI count toward your Social Security retirement benefit calculation, even though you weren't working. Social Security applies a "disability freeze" to your earnings record, which means those zero-earning years while you were on SSDI don't drag down your average lifetime earnings. This protects your retirement benefit from being reduced because of your disability.
Your Medicare coverage also continues seamlessly when your SSDI converts to retirement benefits. If you've been on SSDI for more than 24 months, you're already enrolled in Medicare, and that enrollment carries over into retirement without interruption.
How SSI Works in Retirement
SSI doesn't convert to a retirement benefit the same way SSDI does, because SSI isn't based on your work record. However, SSI continues to be available to people who are age 65 or older with limited income and resources, even if they're no longer classified as disabled. So if you've been receiving SSI due to disability and you reach 65, you can continue receiving SSI under the age-based eligibility category.
The payment amounts and resource limits remain the same—up to $994 per month for individuals in 2026, with a $2,000 resource limit. Your eligibility will still be based on your financial situation, just as it was when you qualified based on disability.
If you also qualify for Social Security retirement benefits (because you worked and earned enough credits earlier in life), those retirement benefits will be counted as unearned income and will reduce your SSI payment accordingly. In some cases, a small retirement benefit plus a partial SSI payment can result in a higher total income than either benefit alone.
Can You Save for Retirement While on Disability?
This is where things get tricky, especially for SSI recipients. SSI's $2,000 resource limit makes it extremely difficult to save money in a traditional bank account or retirement fund. Any savings that push your countable resources above the limit can jeopardize your benefits.
However, there are tools designed specifically to help people with disabilities save without losing benefits. ABLE accounts are the most accessible option—you can contribute up to $20,000 per year in 2026, and the first $100,000 in an ABLE account is excluded from SSI's resource limit. ABLE funds can be invested and grow over time, making them a viable long-term savings vehicle. You're eligible for an ABLE account if your disability began before age 26 (or age 46 under recent legislative changes).
Special Needs Trusts (SNTs) are another option, particularly for larger amounts of money. A properly structured SNT is not counted as a resource for SSI purposes, so funds held in the trust won't affect your benefits. However, SNTs are more complex and expensive to set up than ABLE accounts, and they come with specific rules about how the money can be distributed. Consulting with an attorney who specializes in disability and elder law is recommended if you're considering a trust.
For SSDI recipients who aren't subject to SSI's resource limit, saving in traditional retirement accounts like IRAs is possible—though the money you contribute must come from earned income, which can be challenging if you're not working. If you do have earned income (for example, from work within SGA limits), contributing to an IRA can be a smart long-term move.
Understanding Your Social Security Retirement Benefit
If you've worked in the past, you'll have some Social Security retirement credits on your record. You need 40 credits (about 10 years of work) to qualify for retirement benefits on your own record. In 2026, you earn one credit for every $1,890 in earnings, up to a maximum of four credits per year.
Even if you don't have enough credits for your own retirement benefit, you may qualify for spousal benefits (up to 50% of your spouse's retirement benefit) or survivor benefits if your spouse passes away. These can provide additional income in retirement that supplements your SSI or replaces your SSDI.
It's worth creating a my Social Security account at ssa.gov to review your earnings record and get an estimate of your future retirement benefits. This can help you plan ahead and identify whether you'll have any additional income from Social Security retirement beyond your current disability benefits.
Practical Steps You Can Take Now
Even if retirement feels far away, there are things you can do today to strengthen your financial future. If you're eligible, opening an ABLE account and contributing what you can—even small amounts—allows your savings to grow over time. If you have family members who want to help, they can contribute to your ABLE account on your behalf.
Review your Social Security earnings record for accuracy. If there are errors—missing years of work or incorrect earnings—getting them corrected now will ensure your retirement benefit is calculated correctly later.
If you're able to work part-time within the rules, doing so can increase your Social Security credits, boost your retirement benefit calculation, and provide extra income in the short term. Just be sure to understand the SGA limits ($1,690 per month for non-blind individuals in 2026) and how earnings affect your current benefits.
Finally, consider meeting with a financial planner who has experience working with people with disabilities. Many nonprofit organizations offer free or low-cost financial counseling, and a professional can help you create a plan that accounts for your unique situation.
Planning for the future is possible, even on disability benefits. Purple's checking account helps you manage your benefits today while tools like ABLE account tracking help you build toward tomorrow.