Social Security 101: Separating Fact from Fiction for Retirement and Disability

Social Security offers financial security for millions of Americans, providing benefits for retirees, disabled individuals, and their families. 

Despite its significance, however, misconceptions about the program abound. This article aims to demystify Social Security, offering a comprehensive overview of its retirement and disability components, elucidating the application and appeals processes, and highlighting recent statistics to provide a current perspective.

If you need guidance, assistance with a claim, or help with an appeal, you can always contact Morgan & Morgan for a free case evaluation to learn more about your options.

What Is Social Security? An Overview

Established in 1935, the Social Security program was designed to offer financial protection to individuals during retirement or in the event of disability. Administered by the Social Security Administration (SSA), the program encompasses two primary benefit categories:

• Retirement Benefits: Available to individuals who have contributed to the Social Security system through payroll taxes during their working years. Eligibility typically begins at age 62, with full retirement age varying based on birth year.
• Disability Benefits: Designed for individuals unable to engage in substantial gainful activity due to a medically determinable physical or mental impairment expected to last at least 12 months or result in death.

Social Security Disability: Recent Statistics

To grasp the current landscape of Social Security Disability Insurance (SSDI), let’s examine recent data:

Beneficiary Numbers: As of January 2024, approximately 11.6 million individuals under the age of 65 received either Social Security or Supplemental Security Income (SSI) benefits due to disability.

New Benefit Awards: In 2023, about 5.8 million people were awarded Social Security benefits. Of these, 9% were disabled workers, translating to approximately 522,000 individuals.

Average Monthly Payments: The average monthly payment for disabled workers has seen a gradual increase. In December 2024, the average payment was $1,743.94, rising to $1,757.78 by January 2025.
 

These figures underscore the vital role SSDI plays in supporting individuals who are unable to work due to disability.

The Social Security Disability Application Process

Navigating the SSDI application process can be intricate. Understanding each step can enhance the likelihood of a successful claim:

Initial Application

Applicants can apply online, by phone, or in person at a local SSA office. The application requires personal details, medical records, work history, and other pertinent information.

The processing time typically ranges from three to five months.

Reconsideration

If the initial claim is denied, applicants have 60 days to request a reconsideration, which involves a complete review by an independent party. The processing time is generally shorter than the initial review but can vary.

Hearing by an Administrative Law Judge (ALJ)

If reconsideration results in denial, applicants can request a hearing before an ALJ within 60 days. The hearing allows applicants to present evidence, call witnesses, and make their case in person.

Appeals Council Review

If the ALJ denies the claim, applicants can seek a review by the Appeals Council. The Council may deny the request, send the case back to the ALJ, or make a decision itself.

Federal Court Review

As a final recourse, applicants can file a lawsuit in federal district court if dissatisfied with the Appeals Council's decision.

It's important to adhere to all deadlines during this process to preserve the right to appeal. Additionally, providing comprehensive and accurate medical documentation can significantly impact the outcome of a claim.

Common Misconceptions About Social Security Disability

Several myths surrounding SSDI can lead to confusion. Let’s separate the facts from fiction.

Myth: “Social Security only benefits retired people.”

The truth: Absolutely false. Social Security provides benefits to 61 million people in the United States, including retired workers and their families, survivors of deceased workers, disabled workers, and their families, according to the SSA. When you pay into Social Security, you don’t just pay into your retirement—you pay to protect yourself and your family in case you are disabled or die a premature death.

Myth: “The Social Security taxes you pay go into a dedicated account under your name, which you get back with interest once you retire.”

The truth: Social Security works by pooling together the tax contributions of all workers into one large fund, and paying those benefits out to those who are eligible for them at the time.

The Social Security taxes that you are paying right now as a worker go towards currently retired people—along with the surviving family members of deceased workers and disabled workers and their families. Your Social Security benefits, on the other hand, will come from those working and paying Social Security contributions at the time of your retirement.

Myth: “You should always begin collecting Social Security as soon as you’re eligible for benefits at age 62.”

The truth: Some people believe if they begin collecting earlier, they’ll earn more over the long run. However, if you delay, your benefits could increase by approximately 8 percent for every year you wait until age 70, according to financial publication The Street. The choice of when to begin collecting depends on each person’s individual circumstances and finances, but it often pays to wait. (It can be helpful to consult a financial advisor for advice tailored to your particular situation and needs.)

Myth: “A married person who has never worked cannot receive Social Security.”

The truth: A married person is able to receive Social Security benefits based on their spouse’s work record, even if they have never worked or paid into Social Security, according to the SSA. Non-working spouses are able to receive benefits of up to 50 percent of their working spouse’s benefits once they are 62.

Myth: “Your Social Security benefits are based on your most recent working years.”

The truth: Some people worry that a lower income before retirement could negatively impact their Social Security benefits, but that’s incorrect. The SSA averages your highest 35 years of earnings to calculate benefits, regardless of when those years occurred in your career.

Myth: "Most disability claims are approved initially."

The truth: A significant number of initial SSDI applications are denied. Persistence through the appeals process can be essential for approval.

Myth: "You can't work at all while receiving SSDI."

The truth: The SSA offers work incentive programs, allowing beneficiaries to attempt returning to work without immediate loss of benefits.

Myth: "SSDI benefits provide full income replacement."

The truth: SSDI benefits are designed to replace only a portion of an individual's previous earnings, not the entire amount.

How Morgan & Morgan Can Help

Navigating the complexities of Social Security Disability claims can be daunting. At Morgan & Morgan, our experienced attorneys are dedicated to guiding clients through each step of the process, from initial application to appeals. We understand the intricacies of the system and are committed to advocating for the benefits you deserve.

Why Choose Morgan & Morgan?

• Expertise: Our team specializes in Social Security Disability law, staying abreast of the latest regulations and procedures.
• Personalized Attention: We recognize that each case is unique and tailor our approach to meet your specific needs.
• No Upfront Fees: We operate on a contingency fee basis, meaning you don't pay unless we secure benefits on your behalf.

If you're considering applying for Social Security Disability benefits or need assistance with an appeal, contact Morgan & Morgan today for a free case evaluation. Let us help you navigate the path to the benefits you rightfully deserve.