Here’s what happens if you reach retirement age and don’t claim Social Security benefits

Despite their expectation that they will, some people never get their Social Security benefits. Late-arriving immigrants, infrequent workers, uninsured workers, and those who pass away are examples of people who give to the system but never receive anything in return (referred to as never beneficiaries). According to data from the Social Security Administration (SSA), 3.3% of people aged 60 and over decide not to claim or postpone receiving their benefits.

Not receiving benefits can have a number of unanticipated consequences, such as:

You Stop Earning Delayed Social Security Retirement Credits at 70

One common piece of advice for people approaching retirement is to postpone retirement benefits until age 70. This enables you to receive 24% more benefits than you would have if you had begun collecting them at age 67, or 32% more at age 66. Benefits start to climb at an annual rate of 8%, but they end when you turn 70.

After you turn 70, get in touch with the Social Security Administration (SSA) to ensure that accurate data is being collected and that there are no administrative justifications for non-payment.

You ll Receive a Bill for Future Part B Premiums

There may be opposition for those who decide to halt their payments, which they can do at any point between reaching full retirement age and turning 70. You must use your personal funds to cover any Medicare premiums if your benefits are interrupted or delayed. Usually, Medicare takes money out of your Social Security paycheck. On the other hand, the CMS will charge you for Medicare Part B premiums if there is no check.

It May Make You Ineligible for Supplemental Security Income (SSI) Benefits

Consider all aspects of your financial situation before choosing to wait to increase your advantages. Rejecting your check could keep you from receiving Supplemental Security Income (SSI) if you are a beneficiary. SSI is meant for those who are in need and do not refuse checks.

If you rely on this money to make ends meet, talk with an SSA agent to establish if you can continue receiving it or if it will make you ineligible.

You Will Leave Money You Earned on the Table

This is particularly true if you suffer from illnesses that can shorten your life expectancy. If benefits are delayed, you might only receive a few months or years of higher payments, which might not seem like much compared to the three to seven years you would have otherwise received. All of the money is now in the Trust for someone else to enjoy, and this would have improved your circumstances.

You Won t Have as Much Money To Invest

Even if your retirement income is enough to pay your expenses, you should still think about applying for Social Security benefits. The SSA reports that poverty rates are higher among people who do not get benefits than among those who do so in the future. Additionally, you can invest the money you receive each month, which could raise its value and provide you and your family with financial stability.

People Who Could Receive Benefits on Your Record Won t Be Eligible

Only a divorced spouse may collect benefits on your behalf while they are suspended or delayed. Any benefits you receive on someone else’s record will likewise be suspended, according to the SSA.

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