Finance
Social Security’s 5-Year Disability Rule – What Retirees Must Know Before It’s Too Late!
Social Security’s 5-Year Disability Rule – Many people in the US do not know that they could lose their Social Security Disability Insurance (SSDI) benefits due to an important rule called the 5-Year Rule.
If you are close to retirement or are already receiving retirement benefits, it is important to understand this rule so that your future financial security is maintained.
In this article, we will learn in detail what this rule is, who it affects, and how you can maintain your eligibility.
What is the 5-Year Rule for Social Security Disability?
The 5-Year Rule is considered part of the Social Security Administration’s (SSA) Recent Work Test, which is used to determine whether a person is eligible for SSDI.
Under this rule, if a person becomes disabled, he or she must have paid Social Security payroll tax for at least 5 years in the last 10 years.
If you have not completed this period, you may be denied SSDI benefits, even if you are medically eligible.
This rule ensures that SSDI is only available to individuals who have recently worked regularly.
How are Work Credits earned in 2025?
Social Security uses a credit system that measures the length of time a person has worked.
This means that in 2025, you would need to earn $6,920 to earn all 4 credits.
You must have earned at least 20 credits in the past 10 years to be eligible for SSDI, only then will you be able to pass the 5-Year Rule.
Why is this rule important for retirees?
This rule can cause problems for many early retirees. Let’s understand why:
- If you retire before full retirement age and stop working, your SSDI eligibility may end.
- If you become disabled five years after retirement, you may be ineligible for SSDI, even if you paid Social Security taxes for decades beforehand.
- SSI benefits usually turn into retirement benefits when you reach full retirement age. But if you become disabled before then and haven’t worked recently, you won’t receive any benefits.
This situation is especially worrisome for people who quit working in their 50s or 60s, and then suffer a serious illness or injury.
Who can be exempt from the 5-Year Rule?
There are some special cases in which this rule doesn’t apply completely. Let’s find out:
- Younger Workers: If you’re under age 31, you need fewer credits for SSDI.
- Blind Workers: This rule is specially waived for people who are legally blind.
- Previously on SSDI: If you were previously approved for SSDI and then returned to work, you can reinstate SSDI within 5 years if your illness returns.
Ways to Maintain SSDI Eligibility
If you’re planning to retire, take these steps to maintain your SSDI eligibility:
Work at least part-time so your Social Security credits will last.- Don’t take early retirement unless you’re confident you won’t need SSDI.
- Check your Social Security statement each year to confirm your earned credits and income.
- Don’t assume you’ll always be eligible—eligibility can expire over time.
Conclusion
Social Security’s 5-Year Rule is one of the most important and least understood rules of SSDI.
If you are close to retirement and stop working, your SSDI eligibility can quietly end. This means that if you become disabled in the future, you may not receive any financial assistance.
Being aware of this rule and planning ahead is vital to your financial security.
FAQs On Social Security’s 5-Year Disability Rule
Q. What is the 5-Year Rule for Social Security Disability?
A. The 5-Year Rule requires a person to have paid Social Security payroll taxes for at least 5 of the past 10 years to qualify for SSDI.
Q. If I don’t pass the 5-Year Rule, will I not get SSDI?
A. If you don’t earn enough work credits to meet this rule, you may be ineligible for SSDI even if you are medically disabled.
Q. Does the 5-Year Rule apply to everyone?
A. No, there are some exemptions for youth under age 31, blind individuals, and people who have previously received SSDI.
