Most people don’t expect to become disabled, but one in four 20-year-olds will experience a disability before reaching retirement age. As a result, many Americans turn to Social Security benefits for financial support when they can no longer work.

The Social Security Administration (SSA) offers two programs to assist those with disabilities:

• Social Security Disability Insurance (SSDI) – Offers financial support to individuals who have contributed to Social Security through payroll taxes, regardless of their income level.
• Supplemental Security Income (SSI) – Offers financial aid to individuals with disabilities who have limited income and resources.

This guide focuses on SSDI and what you need to know if you ever need to apply.

Qualifying for SSDI: A Strict Definition of Disability

The SSA has strict eligibility requirements, making it challenging to qualify for disability benefits. To be considered disabled under SSA guidelines, you must:

• Have a physical or mental impairment expected to last at least 12 months or result in death.
• Be unable to perform substantial gainful activity—meaning you cannot continue your previous job or adjust to new work due to your condition.

The SSA maintains a list of qualifying disabilities that automatically meet the criteria. If your condition isn’t on the list, the SSA will evaluate your case based on factors like your medical history, work experience, education, age, and transferable skills.

Additionally, if you earn above a certain income threshold, you may not qualify unless you meet special rules—such as those for individuals who are legally blind.

Work Credits: How Your Employment History Affects Eligibility

To qualify for SSDI, you must have worked and paid Social Security taxes long enough to earn work credits.

• You can earn up to four credits per year, depending on your income.
• The number of credits you need depends on your age at the time of disability.
• Generally, if you’re between 31 and 42, you need at least 20 credits (about five years of work in the past decade). The requirements increase with age.

If you haven’t worked enough, you may not qualify for SSDI, but you may still be eligible for SSI if you have limited income and assets.

Family Members May Be Eligible for Benefits

If you qualify for SSDI, some family members may also be eligible for benefits based on your work history, including:

• Your spouse (62 or older) if you’ve been married for at least one year.
• Your former spouse (62 or older) if you were married for at least 10 years.
• Your spouse of any age if they care for your child who is under 16 or disabled.
• Your children (under 18 and unmarried).
• Your children under 19 if they are full-time students (through grade 12) or disabled.
• Your adult children if they became severely disabled before age 22.

Each eligible family member may receive up to 50% of your benefit amount, but there is a family maximum limit.

How Much Will You Receive?

 Your SSDI benefit amount is based on your lifetime earnings before you became disabled. To check your estimated benefits, you can create a My Social Security account on the SSA website.

However, keep in mind:

• Other government benefits (such as workers’ compensation or public disability benefits) may reduce your SSDI payments.
• The SSA periodically reviews your case to confirm you still qualify as disabled.
• If your medical condition improves or you start earning above the income limit, your benefits may be reduced or stopped.

Once you reach full retirement age, your disability benefits will automatically convert to Social Security retirement benefits. The amount typically remains the same.

When and How to Apply

It’s important to apply as soon as possible after becoming disabled. There is a five-month waiting period before you receive your first check, so the sooner you apply, the sooner you may receive benefits.

You can apply:

• Online at ssa.gov
• By phone at (800) 772-1213
• In person at your local Social Security office

Information You’ll Need to Apply

When applying, be prepared to provide:

• Your birth certificate (original or certified copy).
• Proof of U.S. citizenship or legal residency (if born outside the U.S.).
• Military discharge papers (if applicable).
• A copy of your W-2 or federal tax return if you’re self-employed.
• Information on workers’ compensation claims (if applicable).
• Social Security numbers for your spouse and children.
• Your checking or savings account information for direct deposit.
• A list of your medical providers, prescriptions, and past jobs.

The Application Process

Once your application is submitted:

1. The SSA reviews your case.
2. It is sent to your state’s Disability Determination Services (DDS) office, which decides if you meet Social Security’s definition of disability.
3. If approved, you’ll receive a letter with your benefit amount and start date.
4. If denied, the letter will explain the reason and how to appeal.

The Bottom Line

Social Security disability benefits can provide essential financial support if you become unable to work, but qualifying can be challenging due to strict requirements. If you or a loved one needs SSDI, it’s crucial to apply as soon as possible and ensure you have the right documentation.

For more details, visit your local Social Security office, check ssa.gov, or call (800) 772-1213 for assistance. Have questions about your financial plan? Navalign Wealth Partners is here to help! Reach out today for expert guidance tailored to your financial future.