You can receive both disability benefits and Social Security, but the rules depend on which disability program you're in and your age

If you have a disability and you're also may be able to access for Social Security retirement or survivor benefits, you may be able to collect from both programs at the same time. The Social Security Administration (SSA) runs three separate disability programs, and each one has different rules about whether you can combine it with other Social Security payments. The key is understanding which program you're in and what the payment limits are.

The three disability programs are Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and Disabled Adult Child (DAC) benefits. SSDI is based on your own work record. SSI is a needs-based program for people with low income and resources. DAC lets you collect on a parent's or ex-spouse's Social Security record if you became disabled before age 22. Each one interacts differently with other Social Security benefits.

Key Takeaways

  • SSDI recipients can collect retirement or survivor benefits on their own record or a family member's record without losing their disability payment.
  • SSI has strict income and resource limits, and receiving other Social Security benefits counts as income that reduces your SSI payment dollar-for-dollar.
  • Disabled Adult Child (DAC) benefits end when you reach full retirement age, at which point your payment converts to a retirement benefit on the same parent's record.
  • If you receive both SSDI and retirement benefits, SSA will pay whichever is higher, not both amounts combined.
  • Your state's Medicaid rules may change based on which benefits you receive, so contact your state Medicaid office before making changes to your benefits.

How SSDI combines with other Social Security benefits

If you receive SSDI based on your own work record, you can also collect retirement or survivor benefits without losing your disability payment. This typically happens when you reach full retirement age. At that point, SSA automatically converts your SSDI to a retirement benefit at the same rate — the payment amount does not change, only the name of the benefit changes on your record.

You can also collect on a spouse's or ex-spouse's record while receiving SSDI. If you are married to someone receiving Social Security, you may be able to receive a spousal benefit in addition to your SSDI. If you are divorced and your ex-spouse is at least 62 years old (or deceased), you may be able to collect on their record. These additional benefits do not reduce your SSDI payment.

If you have children under 19 (or 19 if still in high school), they may also be able to collect child benefits on your SSDI record. Each family member can receive up to 75 percent of your benefit amount, though there is a family maximum that limits the total the household can receive.

How SSI interacts with other income and benefits

SSI is different from SSDI because it is based on financial need, not work history. If you receive SSI and you also receive other Social Security benefits — whether retirement, survivor, or SSDI — that other benefit counts as income. SSA will subtract it from your SSI payment dollar-for-dollar, after a small exclusion.

In 2024, SSA excludes the first $65 of unearned income per month, plus half of anything above that. So if you receive a $500 retirement benefit and $900 in SSI, SSA counts $435 of that retirement benefit as income ($500 minus $65 exclusion). Your SSI payment would be reduced by $435. The exact reduction depends on your state's SSI payment rate and your other income.

SSI also has strict limits on how much money and property you can own. The resource limit is $2,000 for an individual and $3,000 for a couple. If you receive other Social Security benefits, that money counts toward your resource limit. Some assets are excluded — your home, one vehicle, and certain items — but cash and bank accounts are not.

Disabled Adult Child benefits and the conversion to retirement

If you became disabled before age 22 and a parent is receiving Social Security retirement or disability benefits, you may be able to collect Disabled Adult Child (DAC) benefits on their record. You can receive DAC whether your parent is retired, disabled, or deceased. The payment is typically 75 percent of your parent's benefit amount.

DAC benefits end automatically when you reach full retirement age. At that point, your benefit converts to a retirement benefit on your parent's record, and the payment amount stays the same. You do not have to do anything — SSA handles the conversion. If your parent is still working and earning above the earnings limit, your DAC payment may be reduced or suspended, but the conversion still happens at full retirement age.

If you also have your own work record and your own SSDI benefit, you can only receive one benefit at a time. SSA will pay whichever is higher. You cannot collect both DAC and your own SSDI simultaneously.

What happens when you reach full retirement age

Your full retirement age depends on your birth year and ranges from 66 to 67 for people born in 1943 or later. When you reach full retirement age, several things can happen depending on which disability benefit you receive.

If you receive SSDI, your benefit automatically converts to a retirement benefit at the same payment amount. You stay on the same record and nothing changes except the label. If you receive DAC, your benefit also converts to a retirement benefit on your parent's record at the same amount. If you receive SSI, you continue to receive SSI — there is no automatic conversion — but your SSI payment may change because the income and resource rules for retirement beneficiaries are slightly different.

If you have your own SSDI and you are also may be able to access for a retirement benefit on a spouse's or parent's record, SSA will pay you the higher of the two amounts, not both. This is called the Government Pension Offset or Windfall Elimination Provision, depending on your situation, though the exact rules vary by your birth year and which benefits you are may be able to access for.

How your Medicaid coverage may change

Many people receiving disability benefits also receive Medicaid, which covers medical expenses. Your Medicaid status depends on which disability benefit you receive and your state's rules.

If you receive SSDI, you are usually automatically enrolled in Medicaid in your state, though some states have different rules. If you receive SSI, Medicaid is tied to your SSI status — if your SSI payment changes or ends, your Medicaid may change too. If you receive DAC, your Medicaid status depends on your state and whether you are also receiving SSI.

Before you make any changes to your benefits — such as working, getting married, or starting to collect on a family member's record — contact your state Medicaid office. Changes to your Social Security benefits can affect your Medicaid coverage, and you may lose coverage if you are not careful. Some states have programs that let you keep Medicaid even if your income rises, but you have to know about them and request them.

Working while receiving disability benefits

SSDI has work incentives that let you earn money without immediately losing your benefit. SSA excludes the first $1,550 per month in earnings (in 2024), and after that, you lose $1 in benefits for every $2 you earn. This continues for nine months, after which your benefit stops if you are still working above the limit. You have a nine-month trial work period where you can test your ability to work without losing benefits.

SSI has stricter work rules. SSA excludes the first $65 per month in earnings, plus half of anything above that. So if you earn $200 per month, SSA counts $67.50 as income ($200 minus $65, divided by 2). Your SSI payment is reduced by that amount. Unlike SSDI, there is no trial work period — the reduction happens every month you work.

If you receive DAC and you work above the earnings limit, your DAC payment may be suspended, but it will resume when you stop working or your earnings drop below the limit. The earnings limit for 2024 is $1,550 per month.

Frequently Asked Questions

Can I collect SSDI and retirement benefits at the same time?

Yes. When you reach full retirement age, your SSDI automatically converts to a retirement benefit at the same payment amount. You do not lose money — the payment stays the same, only the name of the benefit changes. You can also collect spousal or family benefits in addition to your SSDI without losing your disability payment.

If I receive SSI and start collecting retirement benefits, what happens to my SSI?

Your SSI payment will be reduced. SSA counts the retirement benefit as income and subtracts it from your SSI, after excluding the first $65 per month. If your retirement benefit is large enough, your SSI payment could drop to zero. Contact your local SSA office before you start collecting retirement to understand how it will affect your SSI.

What is the difference between SSDI and DAC?

SSDI is based on your own work record. DAC is based on a parent's work record and is only available if you became disabled before age 22. DAC ends at full retirement age and converts to a retirement benefit. SSDI does not end — it converts to retirement at full retirement age but continues as long as you are alive.

Will I lose Medicaid if I start collecting retirement benefits?

It depends on your state and which disability benefit you currently receive. Some states tie Medicaid to SSI status, so losing SSI could mean losing Medicaid. Other states have separate Medicaid programs for people receiving SSDI or retirement. Contact your state Medicaid office before making any changes to your benefits to understand how it will affect your coverage.

Can I work and still receive disability benefits?

Yes, both SSDI and SSI have work incentives. SSDI lets you earn up to $1,550 per month (in 2024) without losing benefits, and you have a nine-month trial work period. SSI reduces your payment by 50 cents for every dollar you earn above $65 per month. The rules are different for each program, so contact SSA to discuss your specific situation.