Losing Social Security benefits in retirement can be an unpleasant surprise. Here we present five situations that could affect your benefits.
1. You’re on SSI and you get a job
Supplemental Security Income (SSI) is a program for low-income people who are disabled, blind, or over age 65.
If you are eligible, you can receive assistance through the Social Security Administration (SSA).
However, if you get a job and your income exceeds $1,971 a month, you could lose this benefit.
2. You’re on SSDI and going back to work
Social Security Disability Insurance (SSDI) covers disabled people who have enough work history to be eligible.
If you are able to return to work, your SSDI benefits could end.
The SSA gives you the opportunity to test your return to work before ending benefits, allowing up to nine months of continued benefits while working, which could extend up to three years in some cases.
3. Claim benefits early
You can start claiming Social Security benefits at age 62. However, if you do, your monthly benefit will be less than if you wait until your full retirement age, which is 67 for those born in 1960 or later.
Although you don’t technically lose your benefits for claiming early, the monthly amount will be lower forever.
4. You divorce your spouse
Divorce can affect spousal benefits. You may still be able to receive benefits based on your ex-spouse’s record, but only if you meet certain conditions, such as having been married for at least 10 years and not currently married to someone else.
5. Your retirement income is too high
Some people are surprised to discover that they must pay taxes on their Social Security income.
This happens when your total retirement income is too high.
The current limit before taxes are applied is $25,000 for individuals and $32,000 for couples filing jointly.
Additionally, some states impose their own taxes on Social Security income, which could further reduce the size of your benefit.
Keep reading:
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–Social Security: beneficiaries with disabilities with confirmed dates to collect in July
–Social Security: who will receive $2,710, $3,822 or $4,873 in July