If you are 63 years old and thinking of early retirement or have been forced to stop working because of a disability, you may be worried about how much Social Security benefit at age 63 is available to you. The Social Security Administration manages the retirement benefits system and the Social Security Disability Insurance program that pays monthly benefits to eligible disabled workers.
Retiring at 63 is early retirement under Social Security rules, which reduces the benefits that you receive each month. It also reduces survivor benefits payable to your spouse and children in the event of your death.
To help you make an informed decision about your Social Security retirement and disability benefits, continue reading for a summary of how much Social Security benefit at age 63 is available. Use the information to discuss your situation with a Social Security disability lawyer at NY Disability Law to learn about the best option available to you.
How much Social Security will you get at age 63?
Full retirement age for purposes of Social Security retirement benefits depends on the year of your birth. For example, for someone born in 1954, full retirement is at 66 years of age, but it gradually increases each year until it becomes 67 years of age for anyone born in 1960 and later.
Retirement benefits are based on your lifetime earnings from working for an employer or through self-employment. The Social Security taxes paid on earnings support the retirement and SSD programs and make you eligible to receive benefits through them either at retirement age or when a disability prevents you from continuing to work. Another program, Supplemental Security Income, does not receive funding through Social Security taxes on earnings.
Maximum retirement benefits that you may receive at full retirement age are $3,345 per month. This is the maximum for 2022 and can change from year to year depending on annual cost-of-living adjustments.
Early retirement at 62 is an option for eligible workers. However, retiring earlier than at full retirement age reduces your monthly benefits by 25% to 30% from what they would have been had you waited. If you are 63 at early retirement, the reduction is determined by the number of months remaining until you would reach full retirement age.
Something else to take into consideration is that the benefit reduction does not end when you finally reach full retirement. The reduction is permanent.
If you retire at 63 and apply for early retirement benefits, it will permanently reduce the survivor benefits payable to your spouse and children should you die. Giving in to the temptation to get retirement benefits at age 63 can also affect SSD benefits.
SSD benefits at 63 years of age
If you have a medically determinable physical or mental impairment that prevents you from working and has lasted or is expected to last for at least one year, you may qualify for SSD benefits. The amount of your monthly SSD payment depends on your earnings record with a maximum monthly benefit of $3,345 in 2022, which is the same as what your maximum retirement benefit would be at full retirement age.
When you reach full retirement age, the Social Security Administration automatically converts the SSD payment to retirement benefits. It does not change the amount you receive each month unless you elected to apply for early retirement at 63.
If you have a disabling medical or mental health impairment, talk to a NY Disability Law SSD lawyer about the options available to you at age 63. It may be better to apply for an SSD benefit and receive your full benefit amount that converts at retirement age without the reduction caused by early retirement.
Another option may be to file applications for SSD and early retirement at 63. You can collect retirement benefits while waiting for approval of the SSD application. The risk is that Social Security may determine that the onset of your disability was after your application for early retirement, which means you get the reduced early retirement payment when SSD stops. Let your SSD lawyer evaluate your claim and advise you about the best way to proceed.
SSI benefit at age 63
You must have very limited income and resources valued at no more than $2,000 to qualify for SSI and meet at least one of the following criteria:
- 65 years of age or older.
If you do not qualify as blind or disabled, you cannot collect an SSI benefit at age 63. Unlike Social Security retirement benefits that have an early retirement option, 65 is the minimum age you must be to qualify for SSI without having a disability or being blind.
Learn more about Social Security at age 63
An excellent source for information and advice you can trust about your Social Security benefit at age 63 is an SSD lawyer at NY Disability Law. Contact them today for a free consultation.