Say Goodbye to Social Security Benefits – How You Could Lose Your Monthly Check

Social Security is a crucial source of financial stability for many Americans, including retirees, survivors, and people with disabilities. While benefits under these programs are generally guaranteed, there are circumstances under which they may be reduced or terminated.

Programs

Social Security consists of three main programs:

• Old-Age and Retirement Insurance
• Survivors Social Security
• Social Security Disability Insurance (SSDI)

Despite its importance, current eligibility for benefits does not guarantee that they will continue indefinitely. Several factors can affect the duration and amount of benefits you receive.

Retirement

Social Security retirement benefits are designed to replace a portion of a person’s income when they retire or reduce their work hours. The full retirement age (FRA) for unreduced benefits varies by year of birth, but is between 66 and 67.

Although you can start receiving benefits before your FRA, you will receive a reduced amount. For each month taken early, benefits are reduced by 5/9 of 1% for up to 36 months and by 5/12 of 1% for each additional month up to a maximum of 60 months. Retiring at 62 instead of 67 reduces benefits by 30%.

Retirement Age	Benefit Reduction
62	30%
63	25%
64	20%
65	13.3%
66	6.7%
67	0%

Conversely, delaying retirement beyond the FRA increases benefits. For those born in 1943 or later, the rate of increase is 2/3 of 1 percent per month, for an annual increase of 8 percent (24 percent total) until age 70.

Working before the FRA while collecting benefits can also affect the amount you receive. Earnings above certain thresholds can cause benefits to be withheld, but later recalculated and repaid once FRA is reached. For example, in 2024, earnings over $22,320 will result in a $1 reduction for every $2 earned if you are under the FRA all year. If the FRA is reached in 2024, earnings over $59,520 will result in a $1 reduction for every $3 earned.

Survivors

Survivor benefits provide financial assistance to widows, widowers, and dependents of eligible deceased workers. Eligible recipients include:

• Surviving spouse age 60+ or 50+ if disabled
• Surviving divorced spouse (if married for at least 10 years)
• Surviving spouse of any age who is caring for the deceased’s child under 16 or who is disabled
• Unmarried children under 18, or up to 19 if in school, or older with a disability that began before age 22.

Certain conditions may affect eligibility:

• Remarriage before age 60 (50 if disabled): Remarriage before these ages may terminate survivor benefits.
• Child turns 16: Benefits for a surviving spouse caring for a child end when the child turns 16, unless the spouse is 60 or older (50 if disabled).
• Child without disability ages out: Benefits for children stop at age 18, unless they are still in school (then until age 19) or have a disability that developed before age 22.

Disability

SSDI and Medicare provide benefits to people with disabilities that prevent them from working. Conditions that may affect SSDI eligibility include:

• Exceeding monthly earnings limits: During a trial work period, beneficiaries can earn above a threshold ($1,110 in 2024) without losing benefits. After nine months within five years of exceeding this threshold, benefits may be reduced if earnings continue to exceed established limits ($1,550/month in 2024 or $2,590/month if blind).
• Health Improvements: SSDI requires periodic reviews based on the likelihood of medical improvement. Reviews occur every 6-18 months for likely improvements, every three years for possible improvements, and every seven years for unlikely improvements.
• Reaching Full Retirement Age: Upon reaching FRA, SSDI benefits are converted to retirement benefits of the same amount.
• Incarceration: Benefits are suspended during incarceration, but can be reinstated upon release.
• Receiving a higher Social Security benefit: You cannot receive more than one Social Security benefit. The higher benefit takes precedence, such as retirement benefits over survivors or disability benefits.

Knowing the conditions that may affect your Social Security benefits is essential for financial planning. Knowing the factors that can lead to a reduction or termination of benefits can help you make informed decisions and avoid unexpected financial difficulties.

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