His $5,000 Employer Disability Check Reduced His Social Security.
Six Months Later, It Stopped Counting
Quick Read – Employer short-term disability payments count as earnings under Social Security’s retirement earnings test only during the first six months after a worker’s last day of actual work. – Six $5,000 monthly payments totaling $30,000 exceed the 2026 earnings limit of $24,480, potentially causing Social Security to withhold about $2,760 in retirement benefits. – Workers whose disability is expected to last 12-plus months should consider SSDI, which pays based on the full retirement amount rather than a reduced early-claiming amount. – Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests.
Don’t waste another minute; learn more here. Picture a 63-year-old electrician who injured his back on a job site in December. His employer’s short-term disability plan began paying $5,000 a month, roughly two-thirds of his former wages.