Could You Lose Your Social Security? Here’s How to Help Protect It

Let me ask you something. Do you believe your Social Security check is untouchable? Many retirees assume that once they start payments, they’re safe. The truth is, benefits can be reduced, suspended, or even garnished. In this video, I’ll explain nine common situations that can shrink or interrupt your Social Security benefits, and I’ll share steps that you can take to reduce the risk. If you’re around 58 or older with meaningful savings, either close to retirement or already receiving benefits, this information can help.

Earning Too Much Before Full Retirement Age

If you claim early and keep working, Social Security applies an annual earnings test. In 2025, the limit is roughly $23,400 a year or about $1,950 a month. For every $2 earned above that, $1 of your benefit is withheld.

In calendar year when you reach full retirement age, the limit increases substantially. For 2025, $62,100. At this point, with $1 being withheld for every $3 over that amount. Now once you reach full retirement age, the test ends and you can earn without any limit whatsoever. The amounts withheld are later credited back to your monthly calculation, but timing matters.

Our team here at Oak Harvest helps clients review these rules so their work plans and benefit claiming strategies fit together.

Owing Federal Debts

The US Treasury’s offset program can withhold part of your Social Security check to cover certain federal debts. The IRS can levy up to 15 % of your monthly benefit for unpaid federal taxes. For other federal debts, such as defaulted FHA loans or certain benefit overpayments, the program can withhold up to 15 percent, but must leave at least $750 a month. If you have an old federal tax or other government debt, it’s best to resolve or set up a repayment plan before you begin benefits.

Unpaid Court-ordered Child Support or Alimony

Federal law allows states to garnish up to 50 percent of your benefit if you support another spouse or child or up to 60 % if you do not. Another 5 % can be added if you’re more than 12 weeks behind. Staying current and speaking with the court promptly if your situation changes can help you avoid a reduction in your retirement income.

Defaulted Federal Student Loans.

If you default, the Department of Education can instruct the Treasury to garnish up to 15 % of your Social Security benefits, although by law they must leave you at least $750 a month. If you’re behind on student loans, explore rehabilitation or an income-driven repayment plan before you claim Social Security.

Unpaid Federal Income Taxes.

The IRS may withhold up to 15 % of your monthly benefit to satisfy tax debt. Or unlike other debts, there is no $750 protective floor. If you owe back taxes, it’s best to reach an agreement with the IRS before starting your benefits.

Civil Judgments and Victim Restitution

Most lawsuits cannot touch Social Security under federal law. But if a federal court orders restitution to a crime victim, up to 25 % of your monthly benefit can be garnished. If this applies to you, stay in contact with the court and your attorney to manage payment arrangements.

Social Security Overpayments

Overpayments often happen when beneficiaries don’t promptly report changes in their income, marital status, or living arrangements. When the Social Security Administration discovers an overpayment, it may withhold future checks, in some cases up to the full monthly benefit, until the amount is repaid. You can request a lower repayment rate or even a waiver if the overpayment was not your fault. The safest course is to keep your information up to date and respond quickly to any notices from the Social Security Administration.

Missing Documents or Failing to Update Information

If you miss Social Security Administration deadlines to supply proof, such as documentation for spousal benefits or a change of address, your benefits can be suspended until the paperwork is provided. Regularly reviewing your quote, my Social Security unquote account and responding promptly to letters can keep your payments on track.

Extended Travel Outside the U.S. for Some Non-Citizens

U.S. citizens can usually continue to receive benefits overseas, but not non-citizens who remain outside of the country for more than six consecutive months. They cannot generally be paid for the months after that period until they return and stay for at least 30 consecutive days.

Social Security Administration also sends questionnaires to beneficiaries living abroad. Not returning these questionnaires can pause payments. If you plan an extended travel or have non-citizen status, check with the Social Security Administration ahead of time.

Your Social Security benefit is an important part of your retirement income, but it isn’t automatically protected from every risk. The encouraging news is that most of these situations can be avoided or managed by staying informed and keeping your information current and addressing debts early.

At Oak Harvest Financial Group, we work with clients approaching or in retirement to help coordinate Social Security with their broader retirement strategies. This includes investments, taxes and income planning so they can make more confident decisions in retirement. If you’d like to review your own situation for potential red flags or just want a second opinion on your income plan, you’re welcome to schedule a free introductory consultation with me or one of my colleagues. We’ll talk through your circumstances and outline next steps that fit your goals. Click the link below or call our office to set up your visit. Thanks for watching.