Everybody hopes to get Social Security payments at some point, but for some people, that day never arrives. 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 the Social Security Administration (SSA), just 3.3% of people aged 60 and over do not receive Social Security payments, but it is important enough that we must take into account those who choose not to collect their benefits, either by postponing or never claiming them.
The following are some unforeseen repercussions of not claiming benefits:
You Stop Earning Delayed Social Security Retirement Credits at 70
Waiting until you are 70 before receiving retirement benefits is a popular piece of advise for people who are getting close to retirement.
By doing this, you will be able to receive 24% more benefits than you would have if you had started collecting on the day you turned 67, and 32% more than you would have if you had reached 66. Benefits accrue at an annual rate of 8%, but they cease to accrue after age 70.
When you turn 70, your benefits should start immediately. If they don’t, you should get in touch with the Social Security Administration to make sure that the information they have on file is accurate and that there aren’t any administrative reasons why you aren’t getting your benefits.
You ll Receive a Bill for Future Part B Premiums
There may be difficulties for those who decide to halt their benefits, which they can do at any point between reaching full retirement age and turning 70. Any Medicare premiums must be paid out of your own pocket, regardless of whether your benefits are suspended or delayed.
The Centers for Medicare & Medicaid Services (CMS) will charge you for Medicare Part B premiums if there is no Social Security check. Normally, Medicare payments are taken out of your Social Security check.
It May Make You Ineligible for Supplemental Security Income (SSI) Benefits
Examine your complete financial condition before choosing to wait and increase your advantages. Rejecting your Social Security check could keep you from obtaining Supplemental Security Income (SSI), which is meant for the most vulnerable, as individuals who are in need do not refuse checks.
Talk to an SSA agent to find out if you can keep receiving the benefit or if it will render you ineligible if you depend on it to make ends meet.
You Will Leave Money You Earned on the Table
If you have health conditions that can shorten your life expectancy, this is particularly true. 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.
This would have made things better for you, and now that you’re dead, the money is all in the Trust for someone else to use.
You Won t Have as Much Money To Invest
You should think about applying for Social Security benefits even if your retirement income seems to be enough to pay your bills. Compared to present and future recipients, those who never claim benefits have greater rates of poverty, according to the SSA.
Additionally, getting monthly benefits enables you to invest the money, which could raise its value and guarantee you and your family’s financial security.
Those who are qualified for benefits under your record will not be.
People Who Could Receive Benefits on Your Record Won t Be Eligible
Only a divorced spouse is eligible to obtain benefits on your behalf when they are suspended or delayed. Additionally, according to the SSA, any benefits you obtain on someone else’s record will be revoked.
See Also: The Infallible Method for Determining When to Claim 2025 Social Security Benefits
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.