Social Security is essential for offering financial assistance to countless Americans. It provides support through three primary programs: Old-Age/Retirement Social Security, Survivors Social Security, and Social Security Disability Insurance (SSDI). Nevertheless, these benefits are not always guaranteed to last a lifetime and may be reduced or cut off under specific conditions.
The age at which you are eligible to receive full retirement benefits varies according to your birth year. Individuals born between 1943 and 1954 achieve full retirement age at 66, whereas those born in 1960 or later must wait until they turn 67. If you claim benefits before reaching your full retirement age, your monthly payments will be permanently diminished.
Conversely, postponing retirement beyond the full retirement age can enhance benefits through delayed retirement credits until the age of 70. If you work while collecting retirement benefits before hitting your full retirement age, your Social Security payments may be impacted if your earnings surpass particular thresholds. In 2024, those who remain under full retirement age for the entire year will have $1 in benefits withheld for every $2 earned over $22,320.
For individuals reaching full retirement age in 2024, benefits will be reduced by $1 for every $3 earned above $59,520.
Changes in Social Security eligibility
Survivor benefits are available to the spouses, children, and dependents of qualifying workers based on the earnings of the deceased individual.
Multiple family members may qualify, including surviving partners, divorced spouses (provided the marriage lasted a minimum of ten years), and unmarried children under the age of 18 or 19 if still enrolled in school. However, remarrying prior to age 60 (or 50 for those with disabilities) may lead to the forfeiture of survivor benefits while married. SSDI grants financial support to those unable to work because of a disability.
To be eligible, individuals must possess an adequate work history and a disability that hinders substantial gainful activity. SSDI benefits can be terminated if the beneficiary’s earnings exceed the permissible limit during a trial work period or an extended eligibility interval. Recipients are also subject to periodic assessments to confirm their ongoing qualification for benefits.
Inmate status can lead to the suspension of SSDI benefits, although they may be reinstated following release. It is crucial for those dependent on Social Security benefits to be informed about the factors that could result in a decrease or cessation of these payments. By understanding these conditions, individuals can better strategize and prepare for potential shifts in their financial circumstances.
