The question “Can You Get Retirement And Disability” explores whether individuals can receive both retirement and disability benefits at the same time, which depends on several factors such as plan type, eligibility, and overlapping federal or military programs. This page outlines the scenarios, rules, and recent updates affecting retirement and disability payments, so readers can better understand their rights and responsibilities.
Direct Answer
In many cases, individuals may qualify for both retirement and disability benefits, but the ability to receive both depends on specific program rules.
Military retirees may receive concurrent retirement and disability pay (CRDP) if they meet certain service-connected disability criteria. See the official CRDP guidance for detailed requirements.
For Social Security, typically you cannot receive both Social Security Disability Insurance (SSDI) and full Social Security retirement at the same time; the higher benefit is usually paid once retirement age is reached.
Some programs, like the VA disability compensation, are not affected by Social Security or military retirement status and can be received concurrently.
Public pension or Railroad Retirement Board (RRB) benefits may have unique rules; eligibility for early Medicare can arise with total disability after retirement. Reference the RRB official disability page for specific guidelines.
Receiving both benefits may impact tax obligations and health coverage timelines.
Who This Applies To & Eligibility
Military retirees, including those eligible for military pension and disability payments, may qualify under concurrent receipt programs.
Veterans with service-connected disabilities can claim VA disability compensation regardless of other retirement income.
Workers eligible for Social Security retirement or SSDI are subject to offset and exclusion rules; after reaching normal retirement age, SSDI converts to retirement benefits.
Some public employees (e.g., railroad workers, certain government workers) may have access to special retirement and disability plans with their own eligibility standards.
Eligibility for early Medicare benefits may accompany total disability after retirement in some federal and railroad programs.
Requirements often include age, years of service, medical documentation, and program-specific application processes.
Always verify updated requirements on official agency websites, as program criteria and application details can change.
Key Facts (At-a-Glance)
Item
Details
Plan/Program Type
Federal retirement, Social Security, military, public pension, VA disability, Railroad Retirement
Contribution Limits
Not applicable for most disability claims; retirement plans have annual contribution caps (“sample/illustrative” varies by plan)
Employer Match
Varies; common in 401(k), TSP, and some public pensions (“sample/illustrative” ranges apply)
Tax Treatment
Disability pay from VA is typically tax-free; Social Security and other retirement plans may be taxable depending on income
Vesting
Required for employer retirement contributions; not relevant for most disability programs
Withdrawals
Retirement: age 59 ½+ is standard; disability payments have medical eligibility triggers, not age-based
RMDs
Retirement accounts mandate minimum distributions at a set age (“sample/illustrative” 73+), disability programs usually exempt
Fees
Pension/retirement plans may have administrative/investment fees (“sample/illustrative”), disability programs do not
Portability
Retirement accounts can transfer/roll over; disability benefits do not transfer or roll over
Loans
Possible in defined contribution retirement plans (limits “varies”); not available for disability pay
Beneficiaries
Required for retirement plans; for disability programs, survivor and dependent protections vary
Contributions, Limits & Taxation
Disability benefits (such as VA compensation or SSDI) are not funded by employee contributions, but through federal appropriations or trust funds.
Defined contribution retirement plans (like 401(k) or TSP) have annual employee and employer contribution limits, with sample caps updated yearly (for example, $22,500 per employee for 2023–2024, subject to official IRS adjustments).
Catch-up contributions allow those age 50+ to contribute extra to retirement plans; these are not applicable to disability programs.
Pre-tax contributions (Traditional accounts) reduce taxable income now, while Roth contributions use after-tax dollars with benefits upon withdrawal (if qualified).
VA disability compensation is federally tax-free. Other disability pensions may have unique tax rules; check IRS and SSA official publications for current guidance.
Investments & Fees
Retirement accounts often provide an investment menu (index funds, target-date funds, fixed/income options) and charge investment/administrative fees. These do not typically affect disability benefits.
Disability benefits are a fixed monthly payment (non-investment), unaffected by market risks in the same way as retirement plan balances.
Fee disclosures for retirement plans must be provided under Department of Labor rules; confirm with your plan sponsor or see the Department of Labor official homepage.
Withdrawals, RMDs & Penalties
401(k), IRA, and similar retirement plans usually have a minimum withdrawal age (59 ½). Early withdrawals can result in a 10% penalty unless a disability exemption is met (as defined by IRS rules).
Required Minimum Distributions (RMDs) generally start at age 73+ (“sample/illustrative”), but disability pay from VA or SSDI is not subject to RMDs.
Some programs allow lump-sum withdrawals under hardship or disability; tax treatment can differ, so confirm on the official IRS homepage.
For Social Security benefits, claiming disability first may result in automatic conversion to retirement benefits at full retirement age, with no double payment.
Military concurrent receipt programs (CRDP/CRSC) allow eligible retirees to receive both sets of payments without offset, subject to military service and disability rating requirements.
Examples & Scenarios
Scenario
Contribution
Tax Treatment
Withdrawal Timing
Notes
Veteran receives military pension and VA disability
Employee: salary deferral to retirement plan (“sample/illustrative”); none for VA disability
Pension typically taxable, VA disability tax-free
Pension at retirement eligibility, VA disability upon service-connected approval
Concurrent Retirement and Disability Pay (CRDP) allows both without offset
Worker on SSDI turns full retirement age
Payroll tax-funded; no contribution for private accounts
SSDI typically federally tax-free up to thresholds; retirement benefits may become taxable
SSDI converts to retirement payout at FRA
No double payment; highest benefit applies
Railroad worker on disability after retirement
Employer-employee contributions to RRB
Depends on RRB rules; disability payments may be partially taxable
Benefit begins after disability confirmed
Eligible for early Medicare
Retiree with 401(k) empties plan due to disability
Annual elective contributions + employer match
Pre-tax withdrawals taxable; 10% penalty waived if IRS disability criteria met
Upon plan or IRS-approved disability
Rules vary—check official IRS regulations
Alternatives & Complementary Options
Roth IRAs and Roth 401(k)s offer after-tax growth and penalty/ tax-free qualified withdrawals, but are not disability programs.
Private or employer-sponsored long-term disability insurance can supplement income but may coordinate with public disability and retirement benefits.
Annuities purchased with retirement savings can provide a pension-like stream separate from government disability.
Public pension systems and federal programs (like the RRB, state or local disability retirement) are alternatives based on employment history.
Medicare and Medicaid may coordinate with disability or retirement benefits, especially for early retirees with medical needs.
Comparisons
Side-by-Side Features
Feature
Retirement & Disability
Social Security Only
VA Disability
Contribution Limit
“Sample/illustrative” per plan
Not applicable (payroll tax funded)
Not applicable
Tax Treatment
Retirement often taxable, VA disability tax-free
May be taxable above income threshold
Tax-free
Withdrawal Rules
Retirement: age 59 ½+ unless disabled; disability: medical approval
Age 62+, SSDI with medical approval
Medical/disability approval
RMD
Applies to retirement accounts; not to VA disability
Not applicable
Not applicable
Fees
Investment/plan fees apply to retirement only
None (public program)
None
Administration, Forms & Deadlines
Social Security benefits (retirement and disability) administered by the SSA official homepage; claim using SSA-1 (retirement) or SSA-16 (disability) forms.
Military CRDP or Combat-Related Special Compensation (CRSC) is managed via respective service branches and the official VA disability center.
Annual deadlines and requirements for RMD requests, enrollments, and change forms vary by plan—consult your administrator or plan document for specifics.
Tax forms relating to disability and retirement payments include SSA-1099, 1099-R (IRA/401(k)), and the “Disability Determination” packet—refer to the IRS official homepage for filing guidance.
Risk Factors & Responsible Planning Notes
Market risk does not affect disability payments or traditional pensions, but directly impacts investment-based retirement accounts.
Longevity and inflation risk can erode real value of both retirement and disability payments over time; regularly assess your total benefits mix and projections.
Regulatory risk: Offsets, eligibility, and benefit formulas can change due to law or policy updates. Review all program details at least annually.
Coordinating multiple sources of income may have unforeseen tax or healthcare implications; always cross-reference with current official resources listed above.
Related Questions (Quick Answers)
Can I receive VA disability and military retirement pay simultaneously?
Eligible veterans may receive both under CRDP or CRSC programs.
Rules depend on years of service and service-connected disability rating.
Do Social Security disability benefits convert to retirement?
Yes, at full retirement age, SSDI is replaced by the retirement benefit at the same or higher amount.
Double payment is not permitted.
Are disability and retirement benefits taxable?
VA disability is federally tax-free. Other benefits may be taxable if total income exceeds IRS thresholds.
How does being declared disabled after retirement affect Medicare?
Total disability after retirement in some federal and public systems may qualify retirees for early Medicare coverage.
Eligibility and timelines vary—see RRB or SSA official guidance.
What forms or applications are required?
SSA-1 for Social Security retirement; SSA-16 for disability; plan-specific forms for military, VA, or RRB applicants.
Frequently Asked Questions
Can a military retiree receive both pension and disability benefits?
Yes, if eligible for concurrent receipt programs (CRDP/CRSC), military retirees can receive both without offset depending on specific criteria.
Will my disability benefits impact my Social Security retirement payments?
Generally, when reaching full retirement age, disability benefits convert to retirement payments, not add to them.
Is VA disability income affected by other retirement income?
No, VA disability payments are not reduced based on other retirement or Social Security income.
Are there penalties for withdrawing retirement funds early due to disability?
IRS allows penalty-free withdrawals only if the disability meets the strict IRS definition; otherwise, a 10% early withdrawal penalty applies.
How can I check my eligibility for both types of benefits?
Always start by reviewing the latest criteria on official agency websites (SSA, VA, RRB) and consult the relevant application forms.
Conclusion & Next Steps
Receiving both retirement and disability benefits is possible under certain federal, military, and public plans, but the rules and eligibility criteria vary significantly.
Double payment is often not allowed except in specific programs like CRDP for qualified veterans.
