9 Common Pitfalls That Can Lead to the Loss of Your Social Security Checks
Social Security is a critical source of income for millions of Americans, but many don’t realize how easily benefits can be reduced or lost altogether. Knowing the rules is the first step to protecting what you’ve worked hard for. Here are nine reasons people lose their Social Security benefits and how to avoid these common mistakes:
1. Taking Benefits Too Early
It might be tempting to start receiving Social Security as soon as you turn 62, but doing so permanently reduces your monthly checks by as much as 30%. If you can wait until your full retirement age, you’ll receive your full benefits and delaying even longer can lead to higher payments.
2. Earning Too Much While Working
If you’re collecting benefits but haven’t yet reached your full retirement age, earning too much from a job can temporarily reduce your payments. For 2024, earning more than $22,320 results in $1 being withheld for every $2 over that limit. Thankfully, once you reach full retirement age, the SSA recalculates and pays back what was withheld.
3. Incarceration
Being in jail or prison for more than 30 consecutive days results in the suspension of your Social Security benefits. After your release, payments can resume, but you must notify the Social Security Administration (SSA). Family members who rely on your benefits may still be eligible to receive them during this time.
4. Health Improvements for Disability Recipients
If you’re receiving Social Security Disability Insurance (SSDI), your benefits are tied to your health condition. If your medical condition improves or you return to work, your disability benefits may stop. The SSA conducts regular reviews to ensure recipients still meet the qualifications.
5. Failing to Keep the SSA Updated
Not responding to SSA inquiries or failing to update your address can lead to a suspension of your benefits. The SSA needs accurate information to keep your payments flowing, so always report changes promptly.
6. Exceeding Resource Limits for SSI
Supplemental Security Income (SSI) has strict resource limits $2,000 for individuals and $3,000 for couples. Going over these limits, whether through savings or other assets, can make you ineligible for benefits. Keeping track of your resources and reporting changes is key.
7. Fraud
Falsifying information to claim benefits is a serious offense. If the SSA discovers fraud, you could lose your benefits and face criminal charges. Honesty is crucial when dealing with Social Security.
8. Changes in Marital Status
Your marital status can affect certain types of Social Security benefits. For example, if you’re receiving spousal benefits based on an ex-spouse’s record, remarriage may terminate your eligibility. Always check how life changes impact your benefits.
9. Deportation for Non-Citizen Recipients
Non-citizens receiving Social Security may lose their benefits if they are deported. The SSA has specific rules for non-citizens, and staying informed about these regulations is crucial for maintaining eligibility.
How to Protect Your Benefits
The best way to safeguard your Social Security is to stay informed and proactive. Regularly review SSA rules, keep your contact information updated, and report any changes in your income, health, or marital status. By understanding these pitfalls, you can ensure your benefits remain secure for the long term.
Your Social Security benefits are too valuable to risk. Stay vigilant and take the steps necessary to protect your financial future.
