Say Goodbye to Social Security Checks – 3 Ways Retirees Can Lose Their Benefits

The Social Security Administration (SSA) offers a range of benefits, including retirement payments, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) for those with limited income. However, it’s crucial to know that certain actions or circumstances could lead to the loss of these benefits. Thankfully, in some cases, it’s possible to regain them. Here’s what you need to know about how your Social Security benefits might be affected and what you can do to restore them.

Income

One of the most common reasons for losing Social Security benefits is earning more than the allowed income limits. While it’s possible to work and still receive benefits, crossing the income threshold can reduce or even stop your payments.

SSI

For SSI recipients, income limits are strict. In 2024, individuals with an income exceeding $1,971 per month may lose eligibility for SSI. For couples, the limit is slightly higher. Moreover, SSI payments decrease by $1 for every $2 earned from work. Any job you take impacts your eligibility, so it’s essential to report changes in your income or living situation to the SSA to avoid unintentional overpayments.

SSDI

SSDI offers a bit more flexibility. If you begin working while receiving SSDI benefits, you’re allowed a nine-month “work trial period” during which you can earn more without losing your benefits. For 2024, earning more than $1,110 in any month counts as a trial period month. After this trial period, a 36-month “extended period of eligibility” (EPE) begins. During the EPE, if your earnings exceed $1,550 per month (or $2,590 if you’re blind), your SSDI payments may stop for that month. If your earnings remain above this limit after the EPE, your benefits will be discontinued. However, if you find that working is not feasible, you can apply to restart your benefits.

Resources

SSI eligibility isn’t just about income—your resources matter too. Resources include cash, bank accounts, investments, and certain personal property. For 2024, to remain eligible for SSI, you cannot have more than $2,000 in resources as an individual or $3,000 as a couple. Items like your home, one vehicle, household goods, and personal effects are excluded from this limit. Notably, about 70,000 SSI recipients lose their benefits annually due to exceeding the resource limit. Although there are discussions about raising these limits, nothing has been finalized.

Marital

Your marital status can also influence your benefits. If you’re divorced, you might lose the ability to collect benefits based on your ex-spouse’s earnings. For instance, if your marriage lasted less than 10 years or if you remarry, you typically can’t claim benefits from your previous marriage. However, if your subsequent marriage ends, you may regain eligibility based on your ex-spouse’s record.

Incarceration

Incarceration is another significant factor that can affect your benefits. Being imprisoned for more than 30 days can result in your Social Security and SSI benefits being suspended.

Social Security

If your benefits are suspended because of incarceration, you can request reinstatement the month after your release. Even if your benefits are suspended, your spouse or children may still receive them as long as they remain eligible.

SSI During Incarceration

SSI benefits are also suspended during incarceration, but they can resume immediately upon your release. However, if you’re incarcerated for more than 12 consecutive months, your benefits will be terminated, and you’ll need to reapply after your release.

Knowing the rules around Social Security benefits is crucial to ensuring you don’t unintentionally lose them. By staying informed and proactive, you can avoid disruptions to your benefits and take the necessary steps to restore them if lost.

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