All the Ways You Can Lose Your Social Security Disability Benefits: Expert Guide

Losing your Social Security Disability benefits can be daunting for many individuals who rely on these benefits for crucial financial support. It’s essential to understand the various circumstances that could lead to the termination of these benefits to avoid surprises and navigate the system effectively.

WHAT CAN CAUSE YOU TO LOSE YOUR SOCIAL SECURITY DISABILITY BENEFITS?

1. REACHING RETIREMENT AGE

After retirement, individuals cannot simultaneously receive SSDI and Social Security retirement benefits. SSDI benefits will cease, and retirement benefits will take precedence. Understanding this transition is crucial for financial planning.

2. VOLUNTEER WORK CONSIDERED SGA 

Engaging in volunteer work deemed substantial gainful activity by the SSA can impact your disability benefits. Although unpaid, specific volunteer roles may fall under SGA criteria, leading to benefit termination. It’s crucial to be aware of the type of volunteer activities that could jeopardize your benefits.          

3. IMPROVED MEDICAL CONDITION

One common reason for losing Social Security Disability Insurance (SSDI) benefits is when your medical condition shows improvement. The Social Security Administration periodically reviews cases to assess whether the individual meets the disability criteria. Your benefits may cease if they determine that your health has improved significantly. However, you have the right to appeal this decision if you disagree.

4. INCARCERATION OR INSTITUTIONALIZATION

Being incarcerated in prison or an institution can result in the suspension of SSDI benefits. Additionally, fleeing to avoid arrest, violating parole, or certain felony convictions can lead to benefit loss. Once released, benefits may be reinstated, but it’s essential to understand the implications of legal involvement on your benefits.

5. RETURN TO WORK

Returning to work and engaging in substantial gainful activity (SGA) can also result in the loss of SSDI benefits. In 2024, the SSA defines SGA as earning $1,550 monthly ($2,590 for blind individuals). Even part-time work below this threshold could potentially lead to benefit discontinuation if your ability to perform gainful activity is determined.

6. GOING OVER THE INCOME OR ASSET LIMITS (SSI)

For individuals receiving Supplemental Security Income (SSI), surpassing the income or asset thresholds can lead to the discontinuation of benefits. In 2024, the income cap for SSI stood at $943 per month for individuals and $1,415 for couples, with an asset limit of $2,000 for individuals and $3,000 for couples. Understanding and monitoring these limits is crucial, as exceeding them can result in benefit cessation.

Determining whether you have exceeded the income threshold can be intricate due to various contributing factors. These factors may include an increase in income, receiving free food or shelter, a rise in assets, additional spousal income, or parental income considerations. It’s essential to stay informed about these limits and assess your financial situation regularly to avoid surprises regarding your SSI eligibility and benefits status.

7. FAILURE TO COOPERATE WITH MEDICAL TREATMENT

Non-compliance with prescribed medical treatment or therapy can impact your eligibility for disability benefits. The SSA may require evidence of ongoing medical treatment to assess your disability status and a lack of cooperation in this regard could lead to benefit termination.

8. FRAUDULENT ACTIVITIES

Engaging in fraudulent activities related to your disability claim, such as providing false information or misrepresenting your condition, can result in the loss of benefits. Maintaining honesty and transparency throughout the application and review process is essential to avoid potential repercussions.