Social Security is primarily for retirement income, disability benefits, and survivor benefits. It is not typically considered an emergency fund. However, there are certain scenarios where individuals may access emergency funds from Social Security earlier than the standard retirement age. So if you are facing one of these situations, you may be able to use your benefits for assistance.
When Can You Access Emergency Funds from Social Security?
The SSA provides benefits when you reach the age of eligibility, which is typically 62 or older. However, there are situations in which individuals may access emergency funds or expedited payments before reaching retirement age.
1. Presumptive Disability or Blindness Payments
According to their website, SSI applicants who qualify for Presumptive Disability (PD) and Presumptive Blindness (PB) payments can receive support for up to 6 months while the Social Security Administration processes their disability claim. But, it’s important to note that the decision to grant PD payments isn’t based on financial need.
An applicant with one or more of these medical conditions may be granted a PD or PB payment. Additionally, these payments depend on the severity of the condition and the likelihood of approval of the claim. However, once approved, applicants will not need to repay PD payments.
2. Emergency Advance Payments
Another scenario in which you can access emergency funds from Social Security is when you are due benefits, but facing a financial emergency. This may include an immediate need for money to buy food, clothing, shelter, or medical care.
Typically this occurs when benefits have been delayed due to processing or mailing issues. However, the SSA will only provide one advance payment. And, the amount will be the smallest of the:
- SSI federal benefit rate
- the total amount of SS benefits that are due
- amount requested for the emergency
Keep in mind that you will also have to repay the EAP. The SSA will either subtract the amount from payments due to the applicant or in installments from your monthly benefits.
3. Immediate Payments
Although they are similar to EAPs, Immediate Payments are to help those who don’t qualify for the Emergency Advance Payments. If denied, the SSA can make an Immediate Payment to SSI applicants or their beneficiaries who are facing a financial emergency but have not received their benefits.
When you receive an IP, the amount cannot exceed $999. Furthermore, it will be deducted from the first regular payment due to the applicant.
4. Expedited Reinstatement of Benefits
Sometimes, the SSA terminates benefits when earned income or the combination of earned and unearned income exceeds the set limit. When this happens, you can request that your benefits start again through the expedited reinstatement process.
To receive approval, you must start the process within 5 years of the month when your benefits stopped. Additionally, you will have to indicate that your income has fallen below the substantial gainful activity and that your impairment is the same or related to the original impairment.
5. Survivors and Dependents
Unfortunately, some loved ones leave us too soon and never reach retirement age. When you lose a loved one, survivor benefits are available for deceased workers who have accrued Social Security credits. Surviving spouses, children, and dependents can claim their benefits to ease the financial burden of their loss.
However, eligibility and the amount depend on many factors including the deceased person’s age, earning record, and the survivor’s relationship to them.
Additional Information About Expedited Payments and Social Security Benefits
Every situation is different. And, eligibility requirements will vary from case to case. Therefore, it’s important to contact the Social Security Administration with any questions or concerns you have. You can call your local office or visit their website to find more information about eligibility criteria, application processes, and benefit amounts specific to your situation.
Speaking with an SSA representative or a financial advisor can help you make informed decisions based on your unique circumstances.
Read More
- How Are Social Security Benefits Calculated?
- What Happened to The Social Security Spousal Benefits Loophole?
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.
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