Say goodbye to your Social Security benefits – at least if you make these costly errors as certain mistakes could cause retirees’ payments to be suspended, reduced, or even stopped entirely.
Knowing the rules is essential to protect your monthly income and for the tens of millions of retirees, as Social Security is not just supplemental income, it is the cornerstone of financial stability in retirement.
Currently, the average monthly benefit for retired workers is just under $2000, and for many households, these checks represent the largest source of cash flow once careers come to an end.
With concerns about the long-term sustainability of the program, safeguarding those benefits has never been more important.
Yet, not all retirees realize that their payments are not guaranteed in every circumstance. Small changes in personal or financial situations can disrupt, suspend, or even terminate monthly payouts.
So, understanding the rules, and avoiding the most missteps, is essential for maintaining uninterrupted income. Here are five of the common traps to losing Social Security below:
Five ways to lose your Social Security benefits
The Social Security Administration (SSA) enforces strict regulations regarding eligibility and payment conditions and while the program is designed to protect retirees, there are circumstances in which benefits may be reduced, suspended, or revoked.
Some of these issues can be temporary and corrected with proper documentation, but others can cause permanent loss of benefits.
Below are five critical mistakes that could stop payments as early as September 2025.
1. Incarceration
Retirees sentenced to more than 30 consecutive days in prison or jail will see their Social Security benefits suspended.
While payments to a spouse or children may continue if they remain eligible, personal benefits are halted until release.
Supplemental Security Income (SSI) is also suspended during incarceration and permanently terminated if confinement lasts for 12 consecutive months, requiring reapplication after release.
2. Returning to Work While Receiving Disability Payments
Those collecting Social Security Disability Insurance (SSDI) must be mindful of earning thresholds. If monthly income exceeds the “substantial gainful activity” limit – $1,550 in 2024, or $2,590 for blind recipients – the SSA can terminate payments.
Although work incentive programs such as trial work periods exist, consistent earnings above the threshold can result in permanent suspension.
3. Medical Condition Improvement for Disability Recipients
SSDI benefits are contingent upon the persistence of a qualifying medical condition. If medical reviews determine that an individual’s health has improved enough to resume substantial employment, benefits are discontinued.
Payments generally continue for two months following the termination notice, but unless vocational rehabilitation applies, recipients will lose further entitlement.
4. Working Before Full Retirement Age
Choosing to claim Social Security before reaching full retirement age carries risks if employment continues.
The SSA reduces benefits if annual earnings exceed set thresholds: $22,560 for those under retirement age in 2025, with $1 deducted for every $2 earned over the limit.
In the year full retirement age is reached, the threshold rises to $59,520, with deductions of $1 for every $3 above that figure.
After reaching full retirement age, earnings no longer reduce benefits.
5. Remarriage Affecting Spousal or Survivor Benefits
Ex-spouses who qualify for benefits based on a former partner’s record may forfeit those payments if they remarry before age 60. Similarly, certain survivor benefits may be impacted by changes in marital status.
In some cases, eligibility can be restored if the subsequent marriage ends, but benefits are not guaranteed during remarriage.