Social Security benefits are a crucial source of income for millions of Americans, particularly the elderly, disabled, and survivors of deceased workers. These benefits provide financial stability and support to individuals and families, helping them meet their basic needs. However, certain actions or circumstances can put these benefits at risk. Here, we will explore various ways you can risk losing your Social Security benefits, providing relevant statistics and numbers to highlight the potential impact.
Earning Too Much Income While Receiving Disability Benefits
One of the primary ways to risk losing Social Security Disability Insurance (SSDI) benefits is by earning too much income. The Social Security Administration (SSA) has strict guidelines on how much you can earn while still receiving disability benefits. As of 2023, the substantial gainful activity (SGA) limit is $1,470 per month for non-blind individuals and $2,460 per month for blind individuals.
Exceeding these limits can result in the suspension or termination of your SSDI benefits. The SSA conducts periodic reviews of beneficiaries’ earnings to ensure compliance with these limits. If your earnings consistently exceed the SGA limit, the SSA may determine that you are no longer eligible for disability benefits, as your ability to engage in substantial work activity suggests that you are not disabled.
Failing to Report Changes in Your Living Situation
Another way to risk losing your Social Security benefits is by failing to report changes in your living situation. This is particularly relevant for Supplemental Security Income (SSI) recipients, whose benefits are based on financial need. Changes that must be reported include earned and unearned income, such as wages, pensions, and other benefits. It should also include changes in resources like bank accounts, property, and vehicles.
Failure to report these changes can result in overpayments, which the SSA will require you to repay. In some cases, repeated failures to report changes can lead to the suspension or termination of benefits. According to the SSA, overpayments to SSI recipients totaled approximately $6.5 billion in 2022, highlighting the importance of accurately reporting changes in circumstances.
Being Incarcerated
Incarceration can also lead to the suspension of Social Security benefits. If you are convicted of a crime and confined to a jail, prison, or certain other public institutions for more than 30 consecutive days, your SSDI or SSI benefits will be suspended. Benefits can be reinstated once you are released, but you must inform the SSA and provide documentation of your release.
It’s important to note that while benefits are suspended during incarceration, eligible dependents may continue to receive their payments. For example, a child receiving benefits based on a parent’s work record may continue to receive those benefits even if the parent is incarcerated.
Leaving the United States
Leaving the United States for an extended period can affect your eligibility for Social Security benefits. For SSDI recipients, benefits can generally continue while you are outside the U.S., but there are exceptions based on the country you are in. As of 2023, U.S. citizens can receive benefits in most countries, but benefits cannot be paid in certain restricted countries, such as North Korea and Cuba.
For SSI recipients, leaving the U.S. for more than 30 consecutive days generally results in the suspension of benefits. Benefits can be reinstated once you return to the U.S. and meet all eligibility requirements. According to the SSA, approximately 760,000 beneficiaries lived outside the U.S. as of 2022, illustrating the importance of understanding how international travel can impact benefits.
Committing Fraud or Misrepresentation
Committing fraud or misrepresentation to obtain or continue receiving Social Security benefits is a serious offense that can result in the loss of benefits. Fraud can include providing false information on your application, failing to report changes in your situation, or using someone else’s Social Security number.
The SSA takes fraud very seriously and has implemented measures to detect and prevent fraudulent activities. Penalties for fraud can include repayment of overpaid benefits, fines, and imprisonment.
Not Meeting Medical Requirements
For SSDI and SSI recipients, failing to meet medical requirements can lead to the loss of benefits. The SSA conducts periodic Continuing Disability Reviews (CDRs) to determine if beneficiaries still meet the medical criteria for disability. The frequency of these reviews depends on the expected likelihood of medical improvement. In 2022, the SSA conducted approximately 762,000 CDRs.
If the SSA determines that your medical condition has improved to the point where you are no longer considered disabled, your benefits will be terminated. It is essential to comply with all requests for medical information and attend any required medical examinations to avoid losing benefits.
Reaching Retirement Age
For individuals receiving SSDI benefits, reaching full retirement age (currently 66 or 67, depending on your birth year) will result in the conversion of disability benefits to retirement benefits. While this does not technically result in a loss of benefits, the nature of the benefits changes. It is important to understand how this transition works and to plan accordingly for any potential changes in benefit amounts.
Receiving Certain Types of Benefits or Payments
Receiving certain types of benefits or payments can affect your eligibility for Social Security benefits. For example, workers’ compensation payments can reduce SSDI benefits, as can some public disability benefits. The SSA uses a specific formula to calculate the reduction, ensuring that the total amount of combined benefits does not exceed 80% of your average current earnings.
Similarly, receiving an inheritance, winning the lottery, or receiving a large monetary gift can affect SSI benefits, as these are considered countable resources. If your resources exceed the SSI limit of $2,000 for individuals or $3,000 for couples, your benefits may be suspended or terminated.
