Retirement benefits from a former spouse do not reduce your SSDI payment

If you receive retirement benefits based on your ex-spouse's work record, Social Security will not reduce your SSDI (Social Security Disability Insurance) because of it. The two payments are separate programs with different rules. You can receive both at the same time without one affecting the amount of the other.

This is different from Supplemental Security Income (SSI), which is a needs-based program. SSI does count retirement income from any source, including ex-spouse benefits, and will reduce your SSI payment dollar-for-dollar above a small monthly limit. But if you are on SSDI, your retirement income does not change your SSDI amount.

The confusion often comes from the fact that Social Security administers both programs. Many people assume that any income reported to Social Security will affect their disability payment. It does not work that way.

Key Takeaways

  • SSDI payments stay the same whether or not you receive retirement benefits from a former spouse.
  • SSI (a different program) does count retirement income and will reduce your payment, so knowing which program you are on matters.
  • You must report all income to Social Security, but reporting retirement benefits will not lower your SSDI check.
  • If you receive both SSDI and SSI, the retirement income affects only the SSI portion of your payment.

The difference between SSDI and SSI matters here

SSDI is an insurance program. You or your spouse paid into it through payroll taxes over the years. Because you have already paid in, Social Security does not care how much other income you have—your SSDI payment does not change based on what else you earn or receive.

SSI is a welfare program for people with low income and few resources. It is needs-based, which means Social Security looks at your total income and assets to decide how much to pay you each month. Retirement benefits from an ex-spouse count as income for SSI purposes.

Some people receive both SSDI and SSI at the same time. This happens when your SSDI payment is very small. In that case, the retirement income reduces only your SSI portion, not your SSDI portion.

What you need to report to Social Security

You must report all income to Social Security, including retirement benefits from a former spouse. This is a legal requirement, not optional. You report it by contacting your local Social Security office or calling 1-800-772-1213.

Reporting the income does not mean it will reduce your SSDI payment. Social Security needs the information for its records and to make sure you are not receiving benefits you are not may have access to to. But for SSDI, the income straightforward gets noted and does not change your check.

If you are on SSI as well, Social Security will use the reported income to recalculate your SSI amount. You should report changes in income within 10 days to avoid overpayments that you would have to repay later.

How retirement benefits from divorce are calculated

Retirement benefits based on an ex-spouse's record are usually 32.5% of what your ex-spouse receives at their full retirement age. The exact amount depends on your age when you start taking the benefit and your ex-spouse's benefit amount. Social Security has a formula that adjusts the percentage based on how early you claim.

You can claim these benefits at age 62 or later, as long as you were married for at least 10 years and are not currently married. If you are also disabled and receiving SSDI, you can claim the ex-spouse retirement benefit at the same time without any reduction to your SSDI.

The amount you receive from your ex-spouse's record does not depend on your SSDI amount, and your SSDI does not depend on the retirement benefit. They are calculated separately by Social Security.

When retirement income does affect your benefits

If you are receiving SSI along with SSDI, the retirement income will reduce your SSI payment. SSI has a monthly income limit—currently $65 per month is not counted, and anything above that reduces your payment by one dollar for every dollar earned or received.

This means if you receive $500 per month in retirement benefits from your ex-spouse and you are on SSI, your SSI payment will be reduced by $435 per month (the $500 minus the $65 exclusion). Your SSDI payment will not change.

If you are only on SSDI and not on SSI, retirement income has no effect on your payment at all. You can receive as much retirement income as you want without any reduction to your SSDI.

Reporting changes and avoiding overpayments

If your retirement benefit amount changes—for example, if your ex-spouse's benefit increases—you should report the change to Social Security. Changes in income can affect your SSI payment if you receive it, and Social Security needs accurate information to calculate correctly.

If you report income late or do not report it, Social Security may overpay you. An overpayment is money you received that you were not may have access to to, and you will have to repay it. The agency can recover overpayments by reducing your future checks or by other collection methods.

The easiest way to stay current is to report any income changes within 10 days. You can report by phone, by mail, or in person at your local Social Security office. Keeping Social Security informed protects you from having to repay money later.

What happens if you remarry

If you remarry, you lose the right to receive retirement benefits based on your ex-spouse's record. Social Security will stop paying those benefits as soon as your new marriage begins. This is true even if your new marriage ends later in divorce or death.

However, remarriage does not affect your SSDI payment. Your disability benefits continue regardless of marital status. Only the ex-spouse retirement benefit stops.

If you are thinking about remarrying, it is worth understanding how it will affect your retirement income before you make that decision. You can call Social Security to ask about your specific situation.

Frequently Asked Questions

Will my SSDI go down if I start taking retirement benefits from my ex-spouse?

No. SSDI and retirement benefits are separate programs. Your SSDI payment will not change based on retirement income. If you also receive SSI, only the SSI portion may be reduced, not the SSDI portion.

Do I have to tell Social Security about retirement benefits from my ex-spouse?

Yes, you must report all income to Social Security within 10 days of receiving it. Reporting does not reduce your SSDI, but failing to report can lead to overpayments that you will have to repay. Call 1-800-772-1213 to report income changes.

What is the difference between SSDI and SSI on income?

SSDI ignores other income—your payment stays the same no matter what else you earn or receive. SSI counts all income and reduces your payment based on how much you have. Some people receive both programs at once, in which case income affects only the SSI part.

Can I receive both SSDI and retirement benefits from my ex-spouse at the same time?

Yes. You can receive SSDI and retirement benefits based on your ex-spouse's record at the same time without either one reducing the other. Both payments will be made to you each month.

What happens to my retirement benefits if I remarry?

Remarriage ends your right to receive retirement benefits based on your ex-spouse's record. However, remarriage does not affect your SSDI payment, which continues regardless of marital status.