A recent conversation with a middle-aged gentleman brought a dangerous situation to light. Apparently, he took an early retirement at age 50 from his former employer, and with his small retirement pension and his 401K accounts he was able to sustain a modest, comfortable standard of living. Unfortunately, falling stock values have cut his 401K and IRA funds down to about half of what they once were and his income has now fallen well below what he needs to stay afloat.
He said that he would gladly go back to work, but he has since become disabled and can’t earn a living. The problem now is that he is still too young to retire but he hasn’t made enough recent contributions to the Social Security system to be eligible for disability benefits. He would consider filing for SSI but his monthly pension is just above the threshold limit.
This gentleman should have applied for Social Security disability benefits at the time he became disabled. At that time, he still had enough work credits to be eligible for disability benefits. Instead, he sadly assumed that he didn’t need the benefits because he was happy and well off enough with his personal investments and his small retirement pension from his previous employer. It’s a truly sad case.
In the midst of the current economic slowdown, disability claims are on the rise. Not surprisingly, the SSA just released numbers showing that Social Security disability claims were up more than 15% for the first quarter of 2009, and are expected to continue to climb higher still. We need to point out and address those issues that constitute common errors in disability strategy.
1 - Are You Really Disabled?
Often, a person will assume that he or she is disabled simply because their primary care physician has at some point used the word, “disabled” or “disability” when discussing long-term quality of life. Just because a person is now unable to do their regular job is no guarantee that the person will be disabled as far as the Social Security Administration is concerned. Ultimately, a person must be unable to perform any gainful employment, not just the one for which they are the most suited.
2 - Do Your Homework
Request, gather, file and organize your medical records. Make lists of the doctors that you’ve seen, the reasons for which you saw each doctor, and the dates that you were examined or treated. Keep records of medications, citing the reason that you were taking the medicine and amount that you were prescribed. If you have room, keep the old medicine bottles as additional proof that you took the medication. .
3- Don’t Wait Too Long To File for Disability
After a person files for disability, there can be up to a 100-day delay in receiving the approval (or denial) of benefits. There is also a mandatory five-month waiting period after the onset of disability before payments are made. Additionally, as shown in the sad case outlined above, it is always best to file for disability as soon after disability has set in, so that full credit for recent contributions can be made.
4- Get Help
Filling for SSDI isn’t like filing your taxes. There are indeed trick questions and obscure rules that will literally sink a case right from the start. Statistics show that claimants who obtain qualified, experience representation have a much higher chance of success in being approved for benefits.
5- Don’t Give Up
Just because you are denied benefits the first or second time around, doesn’t mean that you’re not truly disabled and that you won’t be awarded benefits. Nearly two-thirds of claims that go through appeals and hearings are ultimately awarded benefits. Unfortunately, however, there is a current backlog that keeps appealed claims in the in the Social Security system for two years or more.
It would be nice if there were an iron-clad set of rules that, if followed, would allow all disability claims to be handled efficiently and accurately. All one can really do is file their claim early, get help, keep good records and don’t give up. If a person at least does that, then the rest is simply up to the judge.
