Social Security plays a vital role in providing financial support to millions of Americans. It offers assistance through three main programs: Old-Age/Retirement Social Security, Survivors Social Security, and Social Security Disability Insurance (SSDI). However, these benefits are not always guaranteed for life and can be reduced or terminated under certain circumstances.
For retirement benefits, the age at which you can receive full benefits depends on your birth year. Those born between 1943 and 1954 have a full retirement age of 66, while those born in 1960 or later must wait until 67. Claiming benefits before reaching full retirement age results in a permanent reduction in monthly payments.
On the other hand, delaying retirement beyond the full retirement age increases benefits through delayed retirement credits until age 70. Working while receiving retirement benefits before reaching full retirement age can affect your Social Security payments if your earnings exceed certain limits. In 2024, those under full retirement age for the entire year will have $1 in benefits withheld for every $2 earned over $22,320.
For those reaching full retirement age in 2024, $1 in benefits will be withheld for every $3 earned over $59,520.
Changes in Social Security eligibility
Survivor benefits are provided to the widows, widowers, and dependents of eligible workers based on the deceased worker’s earnings.
Various family members, including surviving spouses, divorced spouses (if the marriage lasted at least ten years), and unmarried children under 18 or 19 if still in school, may be eligible. However, remarrying before age 60 (or 50 if disabled) can result in the loss of survivor benefits while married. SSDI provides financial assistance to individuals unable to work due to a disability.
To qualify, the individual must have a sufficient work history and a disability that prevents substantial gainful activity. SSDI benefits can be lost if the individual earns more than the allowable limit during a trial work period or an extended eligibility period. Recipients must also undergo periodic reviews to ensure they still qualify for benefits.
Incarceration can also result in the loss of SSDI benefits, although they can be reinstated after release. It’s essential for those relying on Social Security benefits to understand the conditions that can lead to a reduction or loss of these payments. By being aware of these circumstances, individuals can better plan and prepare for changes in their financial situation.
