Whether you receive SSI, SSDI, or both, reaching ages 62 and 65 brings questions about how your benefits might change—here's a complete breakdown of what to expect for each program.
In this article, we'll cover:
- How SSDI automatically converts to retirement benefits
- Why turning 62 doesn't trigger changes for SSDI recipients
- What happens to SSI at ages 62 and 65
- Medicare continuation after benefit conversion
- Medicaid considerations for SSI recipients reaching 65
SSDI: Automatic Conversion to Retirement Benefits
If you're receiving SSDI, your benefits will automatically convert to Social Security retirement benefits when you reach your full retirement age (FRA). For most people today, that's age 67. Your monthly payment amount stays the same—SSA simply reclassifies your benefit from disability to retirement.
Turning 62 doesn't trigger any changes to SSDI. Unlike workers who must choose when to claim retirement benefits, SSDI recipients don't need to make any decisions. Continuing on SSDI until the automatic conversion is almost always the best choice, since early retirement benefits would be permanently reduced.
SSI: No Automatic Changes at 62 or 65
SSI operates independently from the retirement system. Because it's a needs-based program for people with limited income and resources, reaching 62 or 65 doesn't automatically change anything about your benefits.
However, at age 65, your eligibility category may shift. Instead of qualifying for SSI based on disability, you'll qualify based on age. This is mostly an administrative distinction, though it could mean fewer continuing disability reviews in the future.
Medicare and Medicaid Considerations
If you've been on SSDI for at least two years, you already have Medicare coverage. When your benefits convert to retirement, your Medicare continues seamlessly. You won't experience any gap in coverage.
For SSI recipients who have Medicaid, reaching 65 may affect your coverage depending on your state. Some states require you to apply for Medicare at 65, which then becomes your primary coverage with Medicaid filling gaps. Check with your state Medicaid office to understand local rules.
Planning for the Transition
Even though many of these changes happen automatically, it's worth reviewing your overall financial picture as you approach these milestones. Consider how your benefits interact, whether you're maximizing available programs, and whether tools like ABLE accounts could help you save for the future.
Your benefits are complicated enough. Purple simplifies money management for SSI and SSDI recipients with a checking account built around your needs. Start with Purple today.