You’re retiring from your civilian job while living with a disability from your military service, and life certainly isn’t getting any cheaper. As you approach retirement, you may begin to wonder, “Will my VA disability affect my Social Security retirement benefits?”
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The short answer is “no.” VA disability compensation and Social Security retirement benefits are different programs, so they generally don’t impact each other. Understanding the details can help you make more informed decisions about your financial future and prepare for what’s coming. We explain below.
Key Takeaways
- Retiring doesn’t affect your eligibility for VA disability compensation or vice versa. Veterans can receive both benefits in full with no offset.
- Veterans can receive Social Security retirement and military retirement at the same time.
- Some veterans can receive both military retirement and VA disability, but the rules are complex. You must qualify for CRDP to receive full payment for both, which means having a 50% VA disability rating or higher. Otherwise, these benefits may impact each other and the overall amount you receive each month.
Does VA disability affect social security retirement benefits? In this article:
Understanding Social Security retirement
Social Security retirement provides monthly income benefits to eligible U.S. workers after they retire. Social Security is based on your work history and the Social Security taxes you paid throughout your career.
Most people become eligible for Social Security after working at least 10 years in a job where they paid into the system in the form of income taxes.
The government calculates your benefit amount by using your highest 35 years of earnings, adjusted for inflation. So, people with longer careers and higher lifetime earnings generally receive larger monthly checks.
Most people also rely on 401ks, pensions, passive income, and other retirement accounts to support themselves after retirement. For many veterans, this may include VA disability compensation.
Will my VA disability affect my Social Security retirement benefits?
Receiving VA disability compensation doesn’t impact your Social Security retirement benefits or vice versa. That means you can receive both Social Security and VA disability with no offset.
VA disability compensation is based on whether you have a service-connected disability and the severity of that condition. Your benefit amount depends on the disability rating you receive and other factors, like whether you have eligible dependents.
Social Security is based on your lifetime earnings and your age when you first claim those benefits, as described above.
These programs serve different purposes and are provided by different government entities. Therefore, many veterans receive both benefits in full at the same time.
Understanding VA disability and military retirement
VA disability compensation and military retirement pay are also two separate benefits, but they can impact each other and change how much compensation you receive each month.
As outlined above, VA disability compensation is a tax-free benefit you receive for a service-connected disability.
Military retirement pay is a taxable benefit you earn through your years of service. Most veterans become eligible after at least 20 years serving in the military.
Historically, veterans who received both benefits had to waive some of their military retirement pay, equal to the amount of their disability compensation. However, there is now a program that helps some veterans receive both benefits.
Concurrent Retirement and Disability Pay (CRDP) allows qualifying military retirees to receive full military retirement pay and VA disability compensation. CRDP is also used to pay back veterans who were previously denied full pay for VA disabilities and military retirement.
To qualify for CDRP, a veteran must be eligible for retirement pay and have a service-connected disability rated at 50% or higher by the VA.
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Can I collect military retirement, VA disability, and Social Security retirement?
Yes, you can collect military retirement, VA disability, and Social Security retirement benefits simultaneously. However, as mentioned above, your military retirement and VA disability benefits could impact each other. Here’s how the benefits generally work together:
- Social Security retirement and VA disability. You can typically receive both at the same time with no offset.
- Social Security retirement and military retirement. You can generally receive both at the same time with no offset.
- Military retirement and VA disability. Some veterans can receive both, but the rules are more complex. You must qualify for CRDP to receive full payment for both, which means having a 50% VA disability rating or higher. Otherwise, these benefits may impact each other and the overall amount you receive each month.
How Woods & Woods can help
Our TDIU lawyers have helped thousands of veterans nationwide who can no longer work because of their service-connected conditions. Call us today for your free, confidential TDIU case evaluation. You won’t pay us unless we win your claim.
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Frequently asked questions
No, retiring doesn’t affect your eligibility for VA disability compensation or vice versa. Veterans can receive both benefits in full with no offset.
Yes, you can receive Social Security retirement and military retirement at the same time.
Neil Woods
Neil Woods is a VA disability attorney and the owner and president of Woods & Woods. He received his law degree from Western Michigan University.
