Social security benefits are important as they provide financial support to most Americans ranging from retirees to survivors of deceased workers and disabled individuals both young and old. While these benefits offer a level of financial security for millions of Americans, many are unaware that certain life situations or changes can lead to a reduction or complete loss of your social security benefit. Understanding these situations is crucial in ensuring that you do not, unknowingly, lose your social security benefit whether it is retirement benefits, Social Security Disability Insurance (SSDI), or Supplemental Security Income (SSI).
Four common ways you could lose your social security benefits
Here are four ways you could easily lose your social security benefits:
Income
One of the most common ways you can lose your social security benefit is earning above the income limit required by social security.
Essentially, the SSI has a limit for beneficiaries. You are not expected to earn more than $1,971 per month as an individual. However, if you exceed this limit, you may not be qualified to receive the benefit.
Additionally, for retirees, there’s a limit on how much you can earn. For 2024, the limit is $22, 320 and $59,520 annually for those under full retirement age and individuals who have reached their full retirement age respectively.Â
When you earn above the limit, $1 will be deducted from your income for every $2 you earn if you are still under the full retirement age. However, in the year you reach full retirement age, $1 will be deducted for every $3 you earn above your income limit.
However, you have more advantage with the SSDI as you can still get a 9 months full payment when you get back to work. Even after your 9 months trial period is over, which does not necessarily have to be consecutive, you can still get paid for 36 months. These months are known as Extended Period of Eligibility (EPE).Â
During the EPE months, your earning limit is required to be $1,550 monthly or $2,590 monthly if you are blind.Â
However, if you exceed the earning limit in any month during your EPE, you won’t be paid for that month. You would typically stop receiving your SSDI benefits if you keep earning above the limits after your EPE.
See how to restart your benefit.
Changes in marital status
If you are receiving spousal benefits or survivor benefits there are several factors that can make you lose your social security benefits.
For examples:
- If you are currently receiving spousal benefits on the basis of a deceased spouse, remarriage can make you lose your benefits especially if you marry before the age of 60.
- Getting divorced: when you get divorced after being married for at least 10 years you may receive social security benefits based on the earnings of your ex-spouse. However if you get married you will lose the benefits completely.
Resource Limit
The resources you own should not exceed the expected limit stipulated by the SSDI. Your resources include cash in your bank accounts, stocks, mutual funds, U.S saving bonds, personal property, vehicles, life insurance, land and anything else that can be changed to cash and used to make purchases. The value of your resources as an individual should not be more than $2,000 and for couples, $3,000.
Committing a crime
Your social security benefits, whether retirement or disability benefits, will be terminated if you are guilty of a crime. However, if you are in jail for a period, for instance, 30 consecutive days then your social security benefits will be suspended. However, you will receive your SSI payment the month you are released.
Additionally, if you are in jail for more than 12 months, your eligibility for SSI will be terminated.Â
Regardless, if you still want to receive your social security benefits again, you will be required to file a new application.
For more information on what prisoners need to know about their social security status, here is a Pdf from the Social Security Administration.
