Over 70 million Americans rely on Social Security payments every month to cover basic expenses and support individuals with disabilities.
However, the Social Security program is facing a funding shortfall that could affect payments as early as the mid-2030s.
What to Know?
Social Security payments are sent out regularly to those who meet eligibility requirements, including retirement age or disability and income limits for Supplemental Security Income (SSI).
However, recipients must keep their details up to date to continue receiving benefits without disruption.
Failing to report changes in personal information, such as address, marital status, or employment status, can lead to payment delays or even financial penalties.
If the Social Security Administration (SSA) conducts a residency check and discovers the recipient doesn’t live at the reported address, payments could be suspended.
To update personal information, recipients can log into their My Social Security account on the SSA website. Additionally, because Social Security has an earnings limit, recipients need to report any changes in income.
If you earn more than the limit and don’t report it, you may receive overpayments that the SSA will require you to repay.
Expert Insights
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek that keeping personal information and residency details updated is essential for receiving benefits.
However, income updates are often overlooked, leading to overpayments that must eventually be repaid.
Michael Ryan, a financial expert and founder of MichaelRyanMoney.com, compared Social Security to a relationship rather than an automated system. He stressed the importance of checking in regularly to avoid issues.
What Could Happen?
Retirees who fail to update their address could face suspended payments. Not reporting income changes could also cause financial trouble.
Ryan explained that retirees receiving benefits before full retirement age face earnings limits, and exceeding them could reduce or suspend benefits.
If overpayments occur, the SSA may withhold future payments until the debt is recovered.
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