Many people either currently rely on Social Security benefits or plan to when they retire, but they aren’t guaranteed. We’ll explain. Many individuals either currently depend on Social Security benefits or intend to do so upon retirement. However, it is important to understand that these benefits are not always guaranteed. Here’s why.
Understanding the ways you could potentially lose your Social Security benefits is crucial, especially if you’re counting on them for financial stability. Here, we’ll explore different scenarios in which you might lose your benefits and discuss whether you can regain them.
Why Social Security Benefits Aren’t Guaranteed and What That Means for You
When planning for retirement or if you become eligible, you might expect to receive Social Security benefits. However, there are several scenarios where you could lose some or all of your benefits, some of which might be beyond your control.
The Social Security Administration provides various forms of benefits:
- Retirement Payments: Monthly payments for retirees.
- Social Security Disability Insurance (SSDI): Assistance for individuals with disabilities.
- Supplemental Security Income (SSI): Support for disabled adults and children with limited income and resources, as well as individuals aged 65 and older who are not disabled but have limited income and resources.
While these benefits are crucial for many, it’s essential to be aware of the factors that could impact your eligibility and the amount you receive.
Can You Lose Social Security Benefits If Your Income Exceeds Limits?
Yes, it’s possible to receive Social Security benefits while maintaining a job. However, your monthly benefits payout may be reduced if your earnings surpass the eligibility limit.
Supplemental Security Income (SSI) Limits
To be eligible for Supplemental Security Income (SSI), you generally need to earn less than $1,971 per month from work. The limit is slightly higher for couples. Exceeding this limit might render you ineligible for SSI.
For every $2 you earn from work, $1 will be deducted from your SSI payment.
Stay Informed
For more details, you might want to know how much your Social Security check could increase in 2025 and when to expect your check this month. For all your queries, consult our essential Social Security and SSDI cheat sheet.
Being well-informed about these limits can help you better manage your finances and ensure you don’t unintentionally jeopardize your benefits. Working encompasses any job you undertake. It’s crucial to promptly report changes to your monthly income and living situation.
Social Security Disability Insurance Income Limits
SSDI beneficiaries enjoy a bit more flexibility when it comes to earning money from work. If you secure a job while receiving SSDI, you can retain your benefits for up to nine months, referred to by the Social Security Administration as a “work trial period.” For 2024, any month you earn over $1,110 in gross wages will count toward this nine-month trial period.
Importantly, these months do not need to be consecutive but must fall within a rolling five-year period. During these nine months, there is no cap on how much you can earn while retaining your benefits.
Extended Period of Eligibility (EPE)
After completing your work trial period, you’ll enter a 36-month “extended period of eligibility” (EPE). During this phase, if your earnings exceed the EPE limit, you will not qualify for your SSDI payment for that particular month.
Key points to remember:
- Report changes in income and living situation promptly.
- During the nine-month work trial period, there’s no limit on earnings.
- The work trial period months must fall within a rolling five-year period.
- After the work trial, the 36-month EPE begins, with earnings limits affecting SSDI eligibility.
Understanding these guidelines can help you navigate your employment while receiving SSDI benefits, ensuring you make the most out of your opportunities without jeopardizing your support. In 2024, the EPE limit is set at $1,550 per month, or $2,590 for those who are disabled due to blindness.