Is disability or early retirement the better choice at 62?

At 62, a worker can claim early Social Security retirement benefits. A worker with a disability that keeps working at a substantial level out of reach can claim SSDI instead. The two programs pay differently, and the difference can matter for the rest of a person's life.

The amount. SSDI is paid at the full benefit amount, calculated from the earnings record — the same amount as full-retirement-age benefits, with no reduction for age. Early retirement is permanently reduced for each month before full retirement age — so receiving disability benefits instead helps avoid that reduction in the monthly benefit amount.

Medicare. SSDI brings Medicare after 24 months of benefits. Early retirement brings Medicare at 65. A person on SSDI can therefore have Medicare earlier.

Standards. Early retirement has no medical test. SSDI requires proof of disability, which takes longer and is often denied at first. For a worker in poor health who is not sure SSDI will be approved, the practical question is whether to claim early retirement as a fallback while a disability claim is pursued.

Switching. A worker who has started early retirement and later wins a disability case will have monthly benefits recalculated as disability benefits — and these are not reduced for claiming early. Early retirement benefits already received are, if the disability case is won, treated instead as an advance against disability benefits. In short, even a worker who is already receiving early retirement from Social Security often benefits from applying for disability.

At full retirement age. SSDI converts automatically to retirement benefits at full retirement age, at the same amount. See what happens at full retirement age.

Age helps the claim. Social Security's medical-vocational rules are more favorable at 55 and 60 and older. See how age affects a claim and claiming disability after 60. See also SSI vs. SSDI.