Question
What is the name of your state?MassachusettsundefinedSSDI/SSI/IRAs/Savings I have been living with 2 terminal illnesses much longer than expected now, for about 9 years. I was forced by my company back in the mid-90s to leave with SSDI/Unum reduced salary compensation payments monthly and have been living on that with no problem. But, I am 55 and received a letter from UNUM (who chips in 1/2 of the monthly salary) stating that in fact I'd now lived much longer than they'd anticipated and that they will cease payment of their half as of 2013. I will be 64 then. Can I start an IRA or Roth IRA and save money in case I do live longer or is this not allowed? I have about $10,000 dollars of savings money for emergencies in bank but wonder if that is even allowed? Will my SSI at 65 be reduced because I've lived on SSDI for so long? If I invest monies that I've saved, am I going to lose SSI when I turn 65?
Answer
I suspect the Unum policy benefits would have terminated at age 65 regardless of your life expectancy. I do find it curious they are giving you an 8 year "warning" and (apparently) cutting off before your 65th birthday. Makes me wonder if they have your DOB incorrect in their system.
I also question the hint that this change is coming because you have "outlived your life expectancy".
You need earned income to establish an IRA. SSDI, disability payments, interest on savings accounts is not earned income.
Answer
Massachusetts
Thanks so much for your speedy answer. I suspected 'no' to be the answer. I thank you for querying me about the DOB data with them. I'll send off a letter to verify that they have the correct one.