Retirement Social Security

9 Reasons You Could Lose Your Social Security Benefits

Don't make the mistake of thinking your benefits are always guaranteed.

By Jenny Cohen

Edited by Chris Kissell

Updated Jan. 22, 2025

Social Security benefits are a financial lifesaver for millions of Americans. But as you craft your retirement plan or apply for disability, it's important to know about the factors that could potentially cause you to lose benefits.

Review these reasons why your benefits could stop or be reduced and consider taking steps to prevent this from happening to you.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!¹ See website for details.

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

You are on SSI and get a job

Supplemental Security Income (SSI) is a program for people who have little to no income and resources and who are disabled, blind, or over the age of 65. If you are eligible, you can receive assistance through the Social Security Administration (SSA).

However, if you get a job and make too much income — $1,971 a month for individuals — you could lose your benefit.

Who really has the cheapest auto insurance in your area? Check your zip code here.

You are on SSDI and return to work

Social Security Disability Insurance (SSDI) covers those who are disabled and who also have enough of a work history to be eligible for the program.

However, your SSDI benefits could end if you are able to work or return to work. The Social Security Administration does give you the chance to return to work and see how things go before benefits end.

Initially, you will get nine months of a continued benefit as you work. This period might be extended by another three years in some cases.

You claim benefits early

You can start claiming Social Security benefits when you are 62 years old. However, if you do so, your monthly benefit will be smaller than if you wait until your full retirement age, which is 67 for everyone born in 1960 or later.

Although you don't technically "lose" your benefits for claiming early, your monthly benefit amount will be permanently smaller, so you may need to find a way to supplement your Social Security.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

Go here, select your free gift, and click “Join Today”
Create your account (important!) by answering a few simple questions
Start enjoying your discounts and perks!

You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.

Become an AARP member now

You divorce your spouse

Divorce can affect spousal benefits. You might still receive benefits on your ex-spouse's record, but only if you meet certain conditions.

Such conditions include having been married to your original spouse for at least 10 years and not being married to a different person today.

You claim benefits before full retirement age and keep working

If you claim benefits prior to your full retirement age but continue to work, your monthly benefit could be temporarily reduced.

Those who work after claiming Social Security prior to full retirement age cannot earn more than $22,320 in 2024 without facing a penalty. For any earnings above that amount, the SSA will deduct $1 from your Social Security check for every $2 you earn.

Full retirement age is between 66 and 67 years old, depending on when you were born. For everyone born in 1960 or later, the full retirement age is 67.

The good news is that once you reach full retirement age, the SSA will begin to pay back the money it deducted earlier. And upon reaching full retirement age, you can work as much as you like without incurring any penalty.

Your income in retirement is too high

Some people are shocked to find that they owe taxes on their Social Security income. This can happen when your overall income in retirement is too high.

The limit before taxes kick in is currently $25,000 for individuals and $32,000 for couples filing jointly.

In addition, some states impose their own taxes on Social Security income, which could further shrink the size of your benefit.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

You are sentenced to time in prison

If you are in jail or prison for more than 30 days, your Social Security income could be suspended until your incarceration ends.

If you're in jail or prison for more than a year, you also might have your SSI benefits terminated and will need to contact the SSA when your sentence is over so you can reapply for benefits.

You collect Social Security as a minor, then turn 18

There are some circumstances when children under the age of 18 can collect Social Security if their parents receive retirement or disability benefits. Children also may be eligible for a survivor benefit if a parent dies.

However, in most cases, benefits stop when the child turns 18.

You fail to report life changes or commit fraud

As you might expect, the SSA takes fraud seriously. Lying about your eligibility or merely failing to report life changes in a timely manner could cause you to lose benefits.

It's also possible that the SSA could place sanctions against your payments. This could result in a loss of six, 12, or 24 months of benefits, jeopardizing your dreams of a stress-free retirement.

In 2023 Americans lost over $10 billion to identity theft and fraud

That's right. According to the FTC, Americans lost over $10 Billion to fraud and identity theft in 2023.

But you can safeguard your data with all-in-one identity theft protection services from Aura which comes with $1,000,000.00 in identity theft insurance² Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group‚ Inc. The description herein is a summary and intended for informational purposes only and does not include all terms‚ conditions and exclusions of the policies described. Please refer to the actual policies for terms‚ conditions‚ and exclusions of coverage. Coverage may not be available in all jurisdictions. per adult, to cover you should you have eligible identity theft-related losses.

An individual plan starts at $9 per month, and you can choose a family plan that outmatches most others - includes Dark Web monitoring to scour data breaches and leaks for your sensitive personal data — such as Social Security numbers (SSN), Medicare information, and phone numbers.

Before you make your next online purchase, protect what you’ve built for a fraction of what it could cost you if your data were compromised.

Save up to 68% when you sign up for protection today!

Bottom line

Social Security is an important benefit not only for retirees but also for disabled Americans and others.

However, your benefit is not always guaranteed. So, take a look at your retirement readiness and determine whether you could survive without this program.

Then, try to avoid miscues that could result in Social Security income suddenly vanishing.

More from FinanceBuzz: