Will a Personal Injury Settlement Affect My Social Security Benefits?
If you’ve been injured and are receiving Social Security benefits, you may be wondering if a personal injury settlement will affect your benefits. The answer is that it depends on the type of Social Security benefits you are receiving.
A large personal injury settlement generally does not affect Social Security Disability Insurance (SSDI) benefits. SSDI is a program that provides monthly benefits to individuals who are unable to work due to a disability. This type of benefit is based on your work history and is not affected by a personal injury settlement.
However, a personal injury settlement can directly affect Supplemental Security Income (SSI) benefits. SSI is a program that provides monthly benefits to individuals who are disabled, blind, or elderly and have limited income and resources. If you receive SSI benefits, a personal injury settlement can cause a reduction or loss of the SSI benefits.
In addition, a lump sum workers’ compensation settlement can reduce one’s disability benefits. If you receive workers’ compensation benefits, you should be aware that a lump sum settlement may reduce your disability benefits.
It is important to remember that if you receive Social Security benefits, you must report any changes in your income or resources to the Social Security Administration. This includes any lump sum payments you receive from a personal injury settlement.
If you have questions about how a personal injury settlement will affect your Social Security benefits, it is best to contact the Social Security Administration directly. They can provide you with more information and help you understand how your settlement may affect your benefits.
In conclusion, a large personal injury settlement generally does not affect Social Security Disability Insurance (SSDI) benefits, but can directly affect Supplemental Security Income (SSI) benefits. It can cause a reduction or loss of the SSI benefits. A lump sum workers’ compensation settlement can reduce one’s disability benefits. If you have questions about how a personal injury settlement will affect your Social Security benefits, it is best to contact the Social Security Administration directly. Jan 21, 2022.
