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The rules change that could impact your disability benefits

If you're a regular visitor to our blog, then chances are you've read a number of our posts. From procedural questions to explanations on why having an attorney during the appeals process is a good idea, we've talked about a wide variety of topics so as to give our Westbury readers a better understanding of just how complex the Social Security Administration can be.

As our frequent visitors know, procedural questions are often discussed on our blog, including the one we highlighted in August last year. In that particular post, we explained that if a person collecting retirement benefits wanted to retire early at age 62 they could without fear of a reduced benefit because SSD would offset the reduction. We also touched on the fact that a person could also collect spousal or survivor benefits, which would also allow a person to maximize their benefits over time.

But if you've been following Social Security news, then you not only know that the disability trust is in jeopardy but that the Administration made some changes to its rules last December that could greatly impact SSD beneficiaries who are nearing retirement.

That's because the changes -- or clarifications as the Administration is calling them -- appear to have wiped out the option of collecting auxiliary benefits for disability beneficiaries. As Laurence Kotlikoff, an economics professor for Boston University, explains, the change made if "effectively impossible for recipients of disability benefits to collect the same full auxiliary benefits that the rest of us can collect between full retirement age and 70."

If you are concerned about your benefits, you're not alone. Many people across the nation have interpreted the changes the same way and have expressed concerns about whether the changes will make it even more difficult for people to maximize their benefits. As for our readers, these changes should spark conversations with an attorney who can help you determine how these changes will affect your case specifically and your future financial plans.

Source: Investment News, "Social Security closes claiming loophole for people with disabilities," Mary Beth Franklin, "April 14, 2015

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