If you've been receiving disability benefits for years, you may be wondering what happens as you approach retirement age. Do your benefits stop? Do they change? Will you need to reapply for something new? The transition from disability to retirement isn't as complicated as most people fear — but there are a few important things to understand, especially if you want to make sure you're getting the most money possible.
In this article, we'll cover:
- What happens to SSDI when you reach full retirement age
- Whether it's worth switching to retirement benefits early at age 62
- What happens to SSI when you turn 65
- How Medicare and Medicaid are affected by the transition
- Rules for spousal and survivor benefits at retirement age
What Happens to SSDI at Full Retirement Age?
If you receive SSDI, the single most important thing to know is this: when you reach your full retirement age (FRA), your SSDI benefits automatically convert to Social Security retirement benefits. You don't need to apply, file paperwork, or do anything — the conversion happens behind the scenes.
Your full retirement age depends on when you were born. For most people currently receiving SSDI, the FRA is 67 years old (for those born in 1960 or later). The amount you receive stays the same after the conversion. Your SSDI benefit was already calculated using the same formula as retirement benefits, so the switch is seamless.
This is actually one of the advantages of receiving SSDI. Because your benefit amount doesn't change at retirement age, you effectively receive your full retirement benefit without ever having to decide when to claim. People who don't receive disability benefits face the decision of whether to claim early at 62 (at a reduced amount) or wait until full retirement age for the full benefit. SSDI recipients bypass this dilemma entirely.
Should I Switch to Retirement Benefits at 62?
In almost all cases, no. If you're receiving SSDI, there is no financial advantage to switching to early retirement benefits at age 62. In fact, doing so would likely reduce your monthly payment.
Here's why. When anyone claims Social Security retirement benefits before their full retirement age, the benefit is permanently reduced — by as much as 30% if you claim at 62 with an FRA of 67. Your SSDI benefit, on the other hand, is calculated at your full retirement amount. So switching to retirement early would mean taking a pay cut for no reason.
The only scenario where age 62 matters is if you're not currently receiving SSDI and are considering whether to apply for disability versus retirement. If you're disabled but haven't applied for SSDI, it's almost always better to apply for disability first, since the benefit amount will be higher than early retirement.
What Happens to SSI at 65?
SSI works differently from SSDI because it's a needs-based program, not tied to your work history. Turning 65 does not end your SSI benefits. If you still meet the income and resource requirements, your SSI payments continue. In fact, SSI is available to people who are 65 or older regardless of disability status — age alone can qualify you.
However, some things do change around age 65. Many SSI recipients become eligible for Medicare at 65 (if they have enough work credits) or may become eligible for different state-level programs. In some states, Medicaid eligibility rules change at 65, which could affect your coverage. It's worth checking with your state's Medicaid office around your 65th birthday to understand any changes.
Your SSI payment amount of $994 per month (for individuals in 2026) stays the same at 65, assuming your income and resources haven't changed. The $2,000 resource limit also remains in place.
How Does the Transition Affect Medicare and Medicaid?
If you've been on SSDI for at least 24 months, you're already enrolled in Medicare. This coverage continues through the transition to retirement benefits without interruption. You don't need to reapply or re-enroll.
If you have both Medicare and Medicaid (sometimes called being a "dual eligible"), both programs continue as long as you meet the eligibility requirements. Some states offer special Medicare Savings Programs that help pay your Medicare premiums, deductibles, and copays if your income is low enough. As a disability recipient transitioning to retirement, you may qualify for these savings programs even if you didn't before.
For SSI recipients who have Medicaid, your Medicaid coverage generally continues at 65 and beyond, since SSI eligibility itself continues. However, the specific Medicaid program you're enrolled in may change — some states move people from disability-based Medicaid to age-based Medicaid at 65. The coverage should be similar, but it's worth verifying with your state Medicaid office.
Spousal and Survivor Benefits
Reaching retirement age also opens up potential spousal benefits. If your spouse has a higher Social Security earnings record than you, you may be eligible to receive up to 50% of their full retirement benefit instead of your own — if that amount is higher. The Social Security Administration will generally pay you the higher of the two amounts.
If your spouse has passed away, you may be eligible for survivor benefits, which can be up to 100% of your deceased spouse's benefit. Survivor benefits are available starting at age 60 (or 50 if you're disabled). If you've been receiving SSDI and your deceased spouse had a higher benefit, check whether switching to survivor benefits at the appropriate age would increase your monthly payment.
The transition from disability to retirement benefits doesn't have to be confusing. Purple helps SSI and SSDI recipients manage their finances through every stage, with a checking account that keeps you organized and compliant.