Say Goodbye to Social Security Benefits – Key Risks That Could Endanger Your Monthly Checks

The Social Security Administration (SSA) provides monthly benefits to more than 70 million Americans, offering a financial lifeline to retirees, disabled individuals, and low-income earners.

However, these benefits could be at risk for many beneficiaries due to certain circumstances they might be unaware of this is according to reports by La Grada on Saturday, August 3, 2024.

According to a June 8 NPR article, an average of 70,000 Social Security beneficiaries have their benefits reduced each year.

As we approach 2025, it’s crucial for beneficiaries to understand the factors that could jeopardize their monthly payments and how to navigate these potential pitfalls.

Beneficiaries may see an income increase in 2025 to help offset the effects of inflation.

However, these adjustments are not guaranteed, and understanding the factors that could affect your benefits is essential.

Here are the three main ways in which you could lose your Social Security benefits:

1. Earning Too Much Money

SSI is designed to assist individuals with limited income and resources. If you start earning more than $1,971 per month, your SSI benefits may be cut off.

For those earning less, payments are reduced by $1 for every $2 earned.

In 2024, the maximum monthly benefit is set at $943 for an individual and $1,415 for a couple.

Job hunting or changing jobs can impact your benefits, so it’s essential to monitor your earnings closely.

SSDI beneficiaries can return to work for up to nine months without losing benefits, thanks to the SSA’s nine-month trial work period.

However, if your earnings exceed $1,550 per month after this period, benefits will be suspended for the months during the 36-month eligibility period where earnings are substantial.

If earnings fall below the substantial amount within this period, benefits may be reinstated. Beyond the 36-month period, consistent substantial earnings can result in permanent termination of benefits.

2. Incarceration

Beneficiaries who are incarcerated for more than 30 days may see their

Social Security and SSI benefits were suspended. Upon release, these benefits are not automatically reinstated:

Retirement/SSDI Benefits: If you are serving a jail or prison sentence, your Social Security benefits are suspended but can be reinstated in the month following your release. Benefits for eligible spouses or children will continue.

SSI Benefits: SSI benefits are suspended during incarceration but can resume the following month after release, with a partial payment depending on the release date.

If the incarceration exceeds 12 months, SSI benefits are terminated, and you will need to reapply for benefits by contacting the SSA after your release.

3. Divorce

Certain rules apply to collecting Social Security benefits from an ex-spouse, which can affect your eligibility:

– You must have been married to your ex-spouse for at least 10 years.

– If you remarry, you cannot collect benefits from your former spouse unless your subsequent marriage ends due to annulment, divorce, or death.

– If you are entitled to benefits on your own and the amount is higher than your ex-spouse’s benefit, you will receive your own benefit amount instead.

Understanding these factors is crucial for protecting your Social Security benefits.

Whether you receive retirement benefits, SSDI, or SSI, staying informed and proactive can help you navigate potential changes in your financial situation.

If you anticipate any changes that could affect your benefits, consider consulting with a financial advisor or directly contacting the SSA to discuss your options and ensure you make informed decisions.

By being aware of these risks and taking appropriate actions, you can better secure your financial future.