What Is Retirement Disability (2023)

RSDI refers to ‘retirement, survivors, and disability insurance.’ It is the acronym for a type of benefit paid by the Social Security Administration (SSA). This is also known as the OASDI, the Old Age Survivors and Disability Insurance Program. 

What are retirement disability benefits? These benefits include retirement benefits, survivor benefits, and disability insurance.

Retirement Disability
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In this article, we will take a look at what the RSDI is and what benefits are available from it. 

What Is Disability Retirement In Service?

Disability retirement is given to those who have provided military service and are then determined to be unfit for duty. This is due to a disability.

Someone whose condition may not be permanent can be placed on a disability retired list for up to 5 years, and then they will be reassessed.

If you have a condition that is now stabilized but still has a disability rating of 30%, you will be declared permanently disabled. 

The number of years of service you provide to the military will account for how much retirement pay you will receive. 

What Benefits Should You Get From Retirement Disability?

RSDI benefits have been available to the public since the Social Security system was implemented in the US. This was a result of the Great Depression.

RSDI is an insurance system that workers pay for using their FICA taxes from their payroll. 

This Social Security system was initially introduced to the country to help seniors who could no longer support themselves. It was also put in place for widows unable to support themselves.

If you have paid enough money into the FICA taxes throughout your life, you will be entitled to retirement disability benefits. 

How Much Support Can You Get From RSDI?

Up to $3,345 in benefits are available if you are eligible for RSDI benefits. How much you are entitled to will depend on your situation. 

How To Know You Are Eligible For RSDI Benefits

RSDI benefits are designed to help someone who can no longer work. If you have paid into the system long enough, you will have the chance to receive money from Social Security benefits.

If you are of retirement age and no longer working in a job that provides enough money to support you, you should be eligible for RSDI payments. 

What Is Retirement Disability?

The R in RSDI stands for retirement. You can receive retirement benefits if you have paid enough into the Social Security System.

Retirement Disability
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You are required to work for a certain number of years, and you have to have paid a certain amount of money into the system to be eligible for the money. 

The amount of money that you will get will depend on the following factors:

  • How old you are at retirement. 
  • The amount of money that you earned when you were paying taxes.

The amount of money you will receive as your Social Security retirement benefit will be a certain percentage of the amount you earned in your highest 35 years. 

You will receive these retirement benefits if you have worked enough to gain 40 work credits. This would take around ten years to build up. This ten years of work doesn’t need to be continuous; it can be over a period of time.

Once you have earned enough credits to earn your retirement, you can choose when you wish to retire. When you retire will have an impact on the amount of money that you will get from your retirement benefit. 

You will have a few options when you have gained enough credits to retire.

These include: 

  • You are taking early retirement. This can be as early as the age of 62. You will receive a reduced retirement disability fund if you choose early retirement. 
  • You can wait until you reach full retirement to get all the retirement benefits you are entitled to. The full retirement age is 66 or 67. 
  • You can increase the amount of money you are entitled to if you work past the full retirement age. 

Retirement Age

The retirement age is different for different people. Those born between 1943 and 1954 will reach full retirement age at 66. If you are born between 1955 and 1960, the retirement age will increase to 67 years old.

This will again rise to 67 years old for anyone born after 1960.

Should You Take An Early Retirement?

If you retire early, you will get less money from the retirement benefits. This money will be taken away from your benefits depending on how many months early you have chosen to retire. 

If you take early retirement, you will be paid a percentage of the amount you would receive if you reached normal retirement age. Often, the decision early will affect the spouse who lives the longest.

While you can start to collect the retirement benefits a while before you reach the normal retirement age, you will receive a redacted amount of money.

You will receive this reduced amount of money for the rest of your life, and the rest of your payments will be less than they would have been if you hadn’t taken the early retirement. 

However, taking early retirement is similar to taking retirement disability. You will get a portion of the amount you have earned, but you won’t get all the money you are owed. 

Final Thoughts

Retirement disability can refer to two different things. One of these is the RSDI, the retirement, survivors, and disability insurance that is a part of the Social Security Administration. 

Another is the disability you are given if you took part in the military but can no longer serve because you have encountered a disability. 

This article explores the details of both of these options.

Andre Flowers
Andre Flowers

Hello, my name is Andre Flowers and I have been a Licensed Real Estate Professional for over 24 years. I also carry several certifications, including: Certified Distressed Property Expert, Certified Global Business Professional, Certified Credit Repair Specialist.

As a current Mortgage Underwriter with 15 years of experience, I have seen my fair share of money-related issues. Whether that be high levels of debt, not enough credit, or simply a lack of funds - I’ve had clients who fit into these categories.

Here I will share tips, tricks, and experiences on how you can get yourself back in control of your finances.

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