Social Security Disability Insurance (SSDI) provides financial assistance to workers who become disabled and their families. The Center on Budget and Policy Priorities reports that 7.4 million Americans received Social Security disability benefits in 2023.
Unlike Supplemental Security Income (SSI), which supports people with disabilities or of advanced age who have limited means regardless of work history, SSDI is an earned benefit. Before becoming disabled, the worker must have paid into the Social Security program through taxes to be eligible for benefits.
When you apply or reapply for SSDI benefits, there are two five-year rules to remember: One concerns the work credit requirement. The other involves reapplying for benefits.
Qualifying for Social Security Disability Insurance
The eligibility criteria for SSDI involve disability, income, and work history.
Your disability must meet the Social Security Administration’s strict standards.
Your income must be below the substantial gainful activity (SGA) amount. For 2024, the SGA is $1,550 per month for people with disabilities other than blindness (For blind people, it is $2,590 per month.)
You must also have earned sufficient work credits and worked recently enough. You must have earned enough work credits before you became disabled relative to your age.
The Five-Year Rule for Work Credits
The five-year rule for work credits helps people aged 31 and older determine whether they have enough credits to qualify for SSDI.
Depending on your income, you can earn up to four credits a year. In 2024, workers earn one Social Security and Medicare credit for $1,730 in covered earnings.
Under the five-year rule, people 31 and older must have worked at least five out of the last 10 years to be eligible for SSDI.
You may work for less than an entire year and still earn the maximum credits. As long as you earned four credits through your income, it does not matter if you earned that income through seasonal work or worked all year. Also, high earners may earn all four credits after only a month of work.
So, per the five-year rule, individuals aged 31 and older must have earned at least the maximum work credits for five out of the past 10 years to be eligible for disability benefits. During that time, they must have accumulated at least 20 credits to qualify.
If you are 30 or under, you’ll need to use a different test to determine whether you have enough work credits to receive Social Security disability benefits. The Social Security Administration determines your eligibility for benefits based on your age, and there are different rules for different age groups.
- Those under age 24 need at least six credits earned in the three years before the onset of the disability.
- People between 24 and 31 are eligible if they worked half the time between the age of 21 and when they became disabled.
For example, a person who became disabled at age 27 must have worked at least three years, earning 12 credits, in the past six years.
- Individuals 31 or older must have earned at least 20 credits in the last 10 years before the disability. This is known as the five-year rule.
The Five-Year Exception for Reinstating Benefits
In addition to the rule that helps people aged 31 and older find out whether they have enough work credits, a second five-year rule applies to past SSDI recipients seeking to reapply.
Per federal regulations, you must have a disability for five months before qualifying for benefits. But, this regulation provides an exception. There is no waiting period if you were previously entitled to disability benefits or had a period of disability within five years of the month you became disabled again.
Because of this five-year rule, you do not have to wait five months to receive benefits. However, the exception does not apply if a drug or alcohol addiction contributed to your disability.
Speak With an Attorney
If you seek disability benefits, an attorney can prove indispensable. A special needs planning attorney near you can explain the rules to you, help you determine whether you could qualify for benefits, and assist you with your application.
Created date:01/10/2024
FAQs
Exemptions to the five-year rule apply for people younger than 31 years of age, with disability onset before age 22, the blind, certain severe medical conditions and veterans with service-related disabilities. The rule doesn't eliminate the application process or the medical review.
What are the exceptions to the 5 year rule for Social Security disability? ›
Exemptions to the five-year rule apply for people younger than 31 years of age, with disability onset before age 22, the blind, certain severe medical conditions and veterans with service-related disabilities. The rule doesn't eliminate the application process or the medical review.
What is considered to be a permanent disability? ›
If your treating doctor says you will never recover completely or will always be limited in the work you can do, you may have a permanent disability. This means that you may be eligible for permanent disability (PD) benefits.
What is the 5/10 rule for Social Security disability? ›
Generally, you must have worked for at least 5 of the last 10 years to qualify for Disability. People under the age of 24 may not need to have worked as long. Sign in and look under “More Benefits” to see if you've worked long enough to qualify.
At what age does Social Security disability payments stop? ›
Your period of disability ends on the last day of the month before the month in which you become 65 years old or, if earlier, the last day of the second month following the month in which your disability ended. (1) The month before the month in which you attain full retirement age as defined in § 404.409.
What is the most approved disability? ›
What Is the Most Approved Disability? Arthritis and other musculoskeletal system disabilities make up the most commonly approved conditions for social security disability benefits.
What is the 20-40 rule for SSDI? ›
You have disability insured status if you: Have at least 20 credits during a 40-calendar quarter period (the 20/40 rule); The 40-calendar quarter period ends with the quarter that you are determined to be disabled; and. You are fully insured in that calendar quarter as explained in §203.
What gives 100% disability? ›
The 100 percent disability rating is often awarded to veterans with two or more limbs that have been amputated or paralyzed or for veterans with active service-related diseases such as cancer, severe cardiac conditions, or psychiatric conditions such as PTSD, bipolar, depression, or schizophrenia.
What is the 55 rule for disability? ›
Revaluating VA Disability Ratings
Once you turn 55, you are typically "protected" and will no longer have to attend an exam to prove that your condition has not changed unless there is reason to suspect fraud. This is sometimes called the 55-year rule.
What is the highest amount you can get on Social Security disability? ›
Social Security Disability Insurance (SSDI) – The maximum payment is $3,822 a month (up from $3,627 in 2023). The maximum family benefit for SSDI is about 85% to 150% of the disabled worker's benefit. The maximum payment at full retirement age is $3,822 monthly.
Social Security disability benefits automatically change to retirement benefits when disability beneficiaries become full retirement age. The law does not allow a person to receive both retirement and disability benefits on one earnings record at the same time.
When a husband dies, does the wife get his social security disability? ›
Surviving spouse, full retirement age or older — 100% of the deceased worker's benefit amount. Surviving spouse, age 60 — through full retirement age — 71½ to 99% of the deceased worker's basic amount. Surviving spouse with a disability aged 50 through 59 — 71½%.
What is the disability 5 year rule? ›
The VA disability 5 year rule allows the VA to ex-examine your VA disability rating within 5 years of your initial examination if your condition is expected to improve over time.
How does the Social Security 5 year rule work? ›
It requires that you must have worked five out of the last ten years immediately before your disability onset to qualify for Social Security Disability Insurance (SSDI).
How hard is it to get SSDI at 60 years old? ›
If you're between 60 and 66, you may have an easy time getting disability benefits while saving your full retirement benefits. The odds of winning a disability claim generally go up for people as they become older, due to special Social Security rules that apply after age 50.
What conditions are not considered a disability? ›
Other Examples of Non-covered Conditions
Broken limbs, sprains, concussions, appendicitis, common colds, or influenza generally would not be disabilities. A broken leg that heals normally within a few months, for example, would not be a disability under the ADA.
Social Security Disability Insurance (SSDI) provides financial assistance to workers who become disabled and their families. The Center on Budget and Policy Priorities reports that 7.4 million Americans received Social Security disability benefits in 2023. 