25 Sep I get SSI. What happens with Social Security if I retire early?

Q. I would like to retire early. Now, I’m receiving Supplemental Security Income (SSI) of $500 a month. If I retire early, what would Social Security income look like?
— Planning ahead

A. There are quite a few specifics that would be important to determine your precise situation.

Let’s go over the details of how these programs work.

Social Security’s Supplemental Security Income (SSI) program is a needs-based program for people who have limited income and resources and have a qualifying disability, are blind, or are age 65 or older, said Jeanne Kane, a certified financial planner with JFL Total Wealth Management in Boonton.

There are no work requirements, and to qualify, you must have resources of less than $2,000 for an individual or less than $3,000 as a couple, she said.

Social Security retirement benefits, in contrast, are not need-based, but paid to people who are “insured”’ and are at least 62 years old.

To be “insured,” you will need to have worked long enough and paid Social Security taxes, Kane said.

“Program benefits are based on your work history,” she said. “In general, a person who is ‘fully insured’ will have worked 10 years where they earned 40 Social Security credits in a job where they paid Social Security taxes.”

You earn one credit per quarter and up to four credits per year, she said.

“Qualifications to become “insured” differ if you are a person with a disability who became disabled or blind at a younger age,” Kane said.

The earliest age to claim Social Security Retirement benefits is at age 62, and the full benefit age ranges between 66 and 67 based on your age. This is called your Full Retirement Age (FRA).

If you claim early, before your FRA, your benefit will be reduced, but if you claim benefits after your FRA, up to age 70, your benefit grows 8% per year, she said.

As an SSI participant, you will need to apply for Social Security retirement benefits, she said.

“It doesn’t happen automatically because not everyone is ‘insured,’” she said. “The Social Security Administration (SSA) will help you determine if you are eligible for retirement benefits based on your work record.”

And if you’re eligible, the agency will calculate the amount based on your work history, she said.

“According to the National Council on Aging, more than half of the people 65 and older who get SSI benefits also receive Social Security retirement benefits,” she said.·

To see what you may qualify for, you can contact Social Security at (800) 772-1213 or find your local office here.

Email your questions to .

This story was originally published on Sept. 25, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.