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SS Disability to "Regular" SS Question
Old 10-02-2019, 02:32 PM   #1
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SS Disability to "Regular" SS Question

Scenario: A female friend is on SS Disability, age 60-ish. She's found a business she thinks she can do, and would like to give it a try. Of course, if it succeeds, she'll lose the SS disability. That would be a good thing, she'd rather do this than collect the paltry disability amount.

On the other hand, if the business then tanks AFTER her benefit is cut, she'll be left with no income until her "regular" SS retirement benefit kicks in. She's divorced and didn't work much, so both the disability and the regular SS are (will be) pretty small.

So the question is, just HOW much would the regular SS be?

She tried the SS web site, created an account and everything, but it says it can't estimate her amount because she's on disability. Huh?

Anyone know where else to turn for answers?
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Old 10-02-2019, 02:48 PM   #2
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I believe a disability benefit equals what the ordinary benefit would be at full retirement age. If the person subsequently makes additional FICA payments the benefit at FRA would increase.
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Old 10-02-2019, 02:49 PM   #3
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Can she log into her SS account and get the lifetime report of her yearly wages/contributions?

With that info she could then use one of the 3rd party tools to analyze her accrued benefit and vary the starting age ie. 62-70 to see the results.

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Old 10-02-2019, 03:03 PM   #4
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This may be helpful:

https://www.disabilitysecrets.com/page1-13.html

Looks like if it failed within the first 5 years she could go back on disability, so if it does well and she pays into SS then her benefit at FRA would go up.
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Old 10-02-2019, 03:58 PM   #5
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Originally Posted by GrayHare View Post
I believe a disability benefit equals what the ordinary benefit would be at full retirement age. If the person subsequently makes additional FICA payments the benefit at FRA would increase.
My DGF is on SSDI and I believe this statement is correct.
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Old 10-02-2019, 04:02 PM   #6
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Can she collect against her divorced husband's benefits? That might affect her payout, of course.

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Edited. I didn't notice at first that she had been married, now divorced.
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Old 10-02-2019, 04:13 PM   #7
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Quote:
Originally Posted by CaptTom View Post
Scenario: A female friend is on SS Disability, age 60-ish. She's found a business she thinks she can do, and would like to give it a try. Of course, if it succeeds, she'll lose the SS disability. That would be a good thing, she'd rather do this than collect the paltry disability amount.

On the other hand, if the business then tanks AFTER her benefit is cut, she'll be left with no income until her "regular" SS retirement benefit kicks in. She's divorced and didn't work much, so both the disability and the regular SS are (will be) pretty small.

So the question is, just HOW much would the regular SS be?

She tried the SS web site, created an account and everything, but it says it can't estimate her amount because she's on disability. Huh?

Anyone know where else to turn for answers?
DW is on SSDI so I know there are a lot of moving parts. options and considerations.
- Estmate the SS benefit with one of the calcilators for Adjusted Monthly Income.
- If she was married for at least seven? years, find the value of spousal benefit and compare to above.
- My DW works part time and does not lose benefits up to a certain dollar amount. She does it to get out of the house and socialize, but it takes a toll on her. So if DF is on SSDI, can she realistically work long hours?
- Find out what that SSDI income limit is, and don't go above that value until the future is clear.
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Old 10-02-2019, 08:44 PM   #8
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Quote:
Originally Posted by MBAustin View Post
This may be helpful:

https://www.disabilitysecrets.com/page1-13.html

Looks like if it failed within the first 5 years she could go back on disability, so if it does well and she pays into SS then her benefit at FRA would go up.
I sent her that link. I had no idea this option existed, thanks!

Quote:
Originally Posted by gauss View Post
Can she log into her SS account and get the lifetime report of her yearly wages/contributions?

With that info she could then use one of the 3rd party tools to analyze her accrued benefit and vary the starting age ie. 62-70 to see the results.

-gauss
Good idea. I'll ask.

Quote:
Originally Posted by atmsmshr View Post
DW is on SSDI so I know there are a lot of moving parts. options and considerations.
- Estmate the SS benefit with one of the calcilators for Adjusted Monthly Income.
- If she was married for at least seven? years, find the value of spousal benefit and compare to above.
- My DW works part time and does not lose benefits up to a certain dollar amount. She does it to get out of the house and socialize, but it takes a toll on her. So if DF is on SSDI, can she realistically work long hours?
- Find out what that SSDI income limit is, and don't go above that value until the future is clear.
Yes, she was married for more than 7 years, so that'll be another number to try to figure out.

I'm recommending giving it a try. Sounds like there are fallback positions. I didn't want to see her left hanging. I have no idea if this business idea will pan out or not. She's pretty confident, and willing to put in the effort, which is always 90% of it anyway.
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Old 10-02-2019, 11:43 PM   #9
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I thought you had to be married 10 years to qualify under a ex’s SS.
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Old 10-03-2019, 03:29 AM   #10
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Originally Posted by Teacher Terry View Post
I thought you had to be married 10 years to qualify under a exs SS.
I was not sure if the marriage had to be 7 or 10 years for divorcees claiming spousal benefit. Turns out it is 10.

Here is the SS website reference:

https://www.ssa.gov/planners/retire/divspouse.html
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DW and I are 58. FIRE August 2019 (previous goals were 2021 and 2020). Non-cola pension available but will remain untouched until mid sixties to grow, max SS for DH at FRA. Mega retiree health available. 401k is AA 35% stocks, 6% cash and 59% split between MM & Short Bond fund.
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Old 10-03-2019, 12:30 PM   #11
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SS also has a 9 month trial period where you can test out whether you can work full time or not. If you quit anytime during the 9 months you don’t lose your benefits. We would have our clients use that so they didn’t risk their benefits if it didn’t work out.
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