Millions of Americans rely on Social Security benefits as a financial backbone which provides financial stability during retirement years or other economically challenging times. However, these requirements could impact your ability to receive these benefits.
The new rules: What’s changing?
Firstly, the Social Security Administration (SSA) is implementing stricter identity verification measures to prevent fraud and protect beneficiaries. Beneficiaries will now have to verify their identity in person in their local SSA office.
Even though this rule aims to enhance security, it also poses a barrier to those who have accessibility benefits, and this may hinder benefits if it’s not done on time.
The next one: Failure to update your personal information
Failing to update your personal information for Social Security could significantly impact your benefits and lead to potential penalties.
Suspension of benefits
Should you fail to update any changes such as your marital status, address or income, the SSA may suspend your benefits. This technically means that if you happen to move houses and fail to update your address, the SSA may be unable to send periodic verification requests to confirm your eligibility criteria and your benefits may be suspended.
Overpayment and refunds
Any changes to your marital status or your income may affect the number of benefits that you receive. Failure to report these changes may result in you receiving more than you are entitled to. It may seem like a positive situation, however in these cases the SSA will demand that the overpaid amount be refunded in full. For example, you are newlywed, and you receive Supplemental Security Income (SSI), this means that your combined income will be recalculated, and you may receive a reduction in benefits.
Penalties for late reporting
A requirement from the SSA is that beneficiaries are to report changes within 10 days after the end of the month in which that specific change occurs. If you fail to do so, this can result in penalties including a decrease in SSI benefits. In the event of purposeful false statements or any prolonged failure to report, the SSA may impose sanctions, such as withholding payments for six months or even longer.
Legal obligations
Beneficiaries must understand that they have a legal obligation to report any changes that could potentially affect their legal eligibility for Social Security benefits. This includes any changes in living arrangements, income or even travel outside the United States for 30 consecutive days. By ignoring these responsibilities, beneficiaries must understand that they stand at a potential loss for benefits, and this may also lead to additional sanctions.
How to update your information
In order to avoid all these issues, citizens can update their personal information in a number of ways:
- Utilise the “my Social Security” online account to updates all your personal information such as your address, phone number and direct deposit details to ensure timeous payments
- If you have any questions or concerns, contact the SSA on 1-800-772-1213 for any assistance.
- Schedule an appointment and visit your local SSA office to verify your identification. Ensure that you carry with you, all the relevant documents.
Conclusion
If you fail to update your personal information with the SSA, this may cause significant consequences, including the temporary suspension of benefits, repayments of overpayments and the potential penalties.
The SSA requests that beneficiaries timeously, especially when it comes to changes in address, marital status, or income changes to ensure that your benefits are not interrupted. By ignoring these requests, the consequences could potentially result in financial burden, legal obligations or loss to significant benefits.
Ensuring that you stay updated with information about the changes to SSA and making sure that you update the required information on time, this will avoid disruptions.