There are several ways in which a beneficiary of Social Security and its different branches can lose their benefits. Many of these reasons are unknown, and some people can make these mistakes precisely due to ignorance. All scenarios must be analyzed because not only losing the entire retirement can be a serious problem, but also losing part of the income due to a bad action or decision represents a financial risk for people who depend on Social Security to live.
Early retirement is one way you can lose a portion of your monthly paycheck. If you apply for benefits too early, that is, before age 67 for most people born after 1960, your benefits may be substantially and permanently reduced. The reduction is based on the number of months you receive benefits before full retirement age. While waiting until age 70 causes your monthly payments to increase greatly, filing for retirement too early does the opposite. If you do this, you will receive lower monthly checks for the rest of your life.
Continue Working After Retirement Could Reduce Your Benefits
If you continue to work after retirement and earn more than a certain limit, your benefits may be reduced according to the Social Security Administration (SSA). The income limit in 2024 for people retiring at age 66 is $19,820, while those retiring at age 67 have a limit of $56,570. Going over those limits can cause the SSA to cut your monthly payments or even stop them entirely, depending on the amount you earn.
A Crime Could Leave You Without Social Security
If you go to jail or prison for more than 30 days for committing a crime, the SSA may suspend your Social Security and Supplemental Security Income (SSI) benefits. Once you are released, you will not get your benefits back immediately. In some cases, they can be suspended for up to 12 months, but the wait may be longer in some specific cases.
Report All Changes to Social Security
There are certain changes in your financial or family situation that may result in the partial or total loss of your Social Security benefits. You must accurately and truthfully report important changes such as returning to work, moving, getting divorced, or getting married.
If you do not report these changes, the SSA could suspend your benefits and even require you to repay improperly received payments. And believe me, you don’t want to owe the federal government money. They are not very friendly when they are in collection mode.
Usually, Benefits End Upon Death, But…
Generally, Social Security benefits end when a beneficiary dies. However, there is a possibility that in specific cases spouses and dependent children may be entitled to a portion of the benefits as survivors.
Who may be eligible?
Spouse:
- You must be at least 62 years old (or 50 if you are caring for a child under 16 or disabled).
- You must have been married to the deceased worker for at least 9 months (or less in the case of death by accident or widowhood with minor children).
- He must not have remarried.
Children:
- They must be under 18 years of age (or 22 if they are a full-time student or have a disability before age 22).
- They must have been dependents of the deceased worker at the time of their death.
Parents:
- They must be at least 62 years old.
- They must not have remarried.
- They must not have enough income to support themselves.
Grandchildren:
- They must be under 18 years of age (or 22 if they are a full-time student or have a disability before age 22).
- They must have been dependents of the deceased worker at the time of their death.
- Your biological parents must be deceased or incapacitated.
The amount of benefits paid to survivors depends on many factors, including the income of the deceased worker, the age of the surviving beneficiaries, as well as the number of people who are beneficiaries. Generally, the surviving spouse can receive up to 50% of the deceased worker’s retirement benefit. Children, for their part, can receive in some cases up to 75% of the deceased worker’s benefit. In very specific cases, parents and grandchildren who were dependent may receive substantially smaller benefits.
