Social Security provides crucial financial support to millions of Americans through retirement benefits, disability assistance, and aid for low-income seniors. However, there are several ways retirees can lose their Social Security checks. One common reason is earning income above certain limits.
While working and receiving benefits is allowed, earning more than the set threshold can reduce monthly payments. For Supplemental Security Income (SSI), individual monthly income typically needs to stay below $1,971. Every $2 earned from work reduces the payment by $1.
Changes in income or living situation must be reported to the Social Security Administration (SSA). Social Security Disability Insurance (SSDI) beneficiaries have more flexibility. They can continue receiving benefits for nine months during a “work trial period” with no earnings cap.
After that, a 36-month “extended period of eligibility” begins. If monthly earnings exceed $1,550 ($2,590 if blind) during this time, no payment is given for that month. Consistently earning above the limit after the period ends will discontinue SSDI benefits.
SSI eligibility also depends on resources, which include cash, bank accounts, stocks, bonds, land, life insurance, personal property, and vehicles. Certain resources, like a primary residence and one vehicle, are exempt.
Ways retirees can lose benefits
Single individuals must have less than $2,000 in resources, while married couples can have up to $3,000. Around 70,000 beneficiaries lose SSI each year due to exceeding resource limits. Marital status changes can affect Social Security benefits too, especially in divorce cases.
Benefits cannot be claimed based on an ex-spouse’s earnings if the marriage lasted under 10 years or the individual remarries. However, eligibility may be restored if a subsequent marriage ends. Incarceration is another way to lose benefits.
The SSA suspends Social Security and SSI payments for prison sentences over 30 days. For Social Security and SSDI, benefits can be reinstated the month after release. A spouse or children may still receive payments if eligible.
SSI benefits resume immediately upon release, but the amount depends on the release date. Incarceration over 12 months terminates SSI, requiring a new application post-release. Retirees must stay informed about Social Security regulations and honestly report income and work activity to avoid penalties or disqualification.
Planning for alternative income sources is also wise in light of potential benefit cutbacks. Factors like finances, health, and lifespan should guide decisions on when to claim retirement benefits.
- LaGradaOnline.”Goodbye to Social Security checks for these retirees – 3 ways to lose the money”.
- DMNews.”Understanding social security and its implications”.
- LaGradaOnline.”Goodbye to Social Security Checks – List of Retirees at Risk”.