As more Americans approach retirement age, it’s important to understand the factors that could impact their Social Security benefits. In 2024, individuals could lose their Social Security checks in three main ways. First, exceeding earnings limits can lead to reduced or lost benefits.
Earning more than $1,971 per month can result in a loss of eligibility for those receiving Supplemental Security Income (SSI). Social Security Disability Insurance (SSDI) recipients have more flexibility, with a nine-month trial work period and a 36-month extended eligibility period. Second, resource limits can affect SSI eligibility.
To qualify, an individual’s resources cannot exceed $2,000 or $3,000 for a couple. If these limits are exceeded, the excess must be spent down before eligibility can be regained. About 70,000 beneficiaries lose their SSI benefits yearly due to exceeding the resource limit.
Third, personal circumstances such as divorce or incarceration can impact benefits. Losing access to an ex-spouse’s benefits may occur if the marriage lasted less than 10 years or upon remarriage. Imprisonment for more than 30 days leads to a suspension of Social Security and SSI benefits, with varying reinstatement processes upon release.
Individuals must understand how their earnings, resources, and personal situations can affect their Social Security benefits. By staying informed and planning accordingly, Americans can avoid unexpected disruptions to their retirement income. Thousands of Americans may lose their Social Security benefits in the coming years.
Recipients of Social Security, Social Security Disability Insurance (SSDI), or Supplemental Security Income (SSI) can lose their benefits under certain circumstances, some of which are beyond their control. One way to potentially lose benefits is by increasing earnings. For SSI recipients, earning more than $1,971 monthly can disqualify them from receiving benefits.
SSDI recipients have a nine-month trial work period and a 36-month entitlement period, during which earning above certain thresholds can lead to a suspension or termination of benefits. Incarceration is another factor that can impact benefits. If an individual is incarcerated for more than 30 days, their Social Security may be suspended, and they may need to reapply for benefits upon release.
Threats to Social Security eligibility
The process differs slightly regarding Social Security/SSDI and SSI benefits. Divorce can also affect Social Security benefits, especially if an individual was receiving benefits based on their ex-spouse’s record.
Eligibility may be lost if the marriage lasted less than ten years, upon remarriage, or if the individual’s own benefits are higher than those based on their ex-spouse’s record. It’s important for Social Security recipients to be aware of these potential scenarios and to stay informed about their benefits. By understanding the factors that can lead to a loss of benefits, individuals can make informed decisions and plan for their financial future.
As Americans approach retirement age, it’s crucial to understand the importance of timely Medicare enrollment and its relationship to Social Security benefits. Failing to sign up for Medicare before turning 65 can lead to costly consequences and potential loss of coverage. The Full Retirement Age (FRA) for those born in 1960 or later is 67, while in 2024, it is 66 years and eight months.
Regardless of when an individual plans to retire, they should sign up for Medicare three months before their 65th birthday to avoid penalties and ensure they receive the necessary health insurance coverage. Applying for Social Security benefits can be done up to four months before the desired start date of payments. However, Medicare enrollment timing is stricter, with applications accepted no more than three months in advance.
Medicare consists of two main parts: Part A (Hospital Insurance) and Part B (Medical Insurance). Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care. In 2024, the deductible for Part A is $1,632 per benefit period, with daily coinsurance for stays over 60 days.
Part B covers certain doctors’ services, outpatient care, medical supplies, and preventive services. It also includes doctor visits, outpatient therapy, some prescriptions, and durable medical equipment. In 2024, the standard monthly premium for Part B is $174.70, with higher premiums for those with higher incomes.
The annual deductible is $240, and there is typically a 20% coinsurance on covered services. Eligible individuals can conveniently enroll online for both Parts A and B on the official Social Security Administration (SSA) website. For assistance, individuals, including those with end-stage renal disease (ESRD), can contact the SSA at 800-772-1213.
By understanding the importance of timely Medicare enrollment and the differences between Parts A and B, seniors can ensure they receive the necessary coverage and avoid losing essential benefits.
