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

We all expect to get Social Security payments someday, but in some circumstances, that day never comes. People who contribute to the system but never receive anything in return (known as never beneficiaries) include late-arriving immigrants, infrequent workers, uninsured workers, and those who die.

It is not a large percentage of people, only 3.3% of those 60 and older, according to the Social Security Administration (SSA), but it is significant enough that we must consider the individuals who choose not to receive their Social Security benefits, either by delaying or never claiming them.

There are some unforeseen effects to not collecting benefits, including:

You Stop Earning Delayed Social Security Retirement Credits at 70

A popular piece of advise for those approaching retirement is to wait until you reach the age of 70 before receiving retirement benefits.

This will allow you to collect 24% more in benefits than if you began collecting on the day you reached your full retirement age of 67, and 32% if you reached your full retirement age of 66. Benefits increase at an annual rate of 8%, but once you reach the age of 70, they stop.

Benefits should begin immediately when you reach the age of 70, but if they do not, you should contact the Social Security Administration to confirm that all data obtained by them is correct and that there are no administrative reasons why you are not receiving your benefits.

You’ll Receive a Bill for Future Part B Premiums

Those who choose to suspend their benefits (which they can do at any time between full retirement age and age 70) may face a battle. Regardless of whether your benefits are suspended or delayed, you will be responsible for paying any Medicare premiums from your own funds.

Medicare payments are generally deducted from your Social Security check; but, if there is no check, the Centers for Medicare & Medicaid Services (CMS) will bill you for Medicare Part B premiums.

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

Before deciding to increase your advantages by waiting, assess your entire financial condition. If you are a Supplemental Security Income (SSI) beneficiary, rejecting your Social Security check may prevent you from getting this income because it is intended for people who need it the most, and those in need do not reject checks.

So, if you rely on this money to make ends meet, speak with an SSA agent to see if you may continue receiving the benefit or if it will make you ineligible.

You Will Leave Money You Earned on the Table

This is especially true if you have health conditions that will limit your life expectancy. Delaying benefits may result in only a few months or years of increased payments, which could be insignificant in comparison to the three to seven years you would have received otherwise. This would have helped your situation, and now that you’ve passed away, all of the money is in the Trust for someone else to enjoy.

You Won’t Have as Much Money To Invest

Even if your retirement income appears to be sufficient to cover your expenses, you should consider claiming Social Security benefits. According to the SSA, persons who never claim benefits have higher poverty rates than current and future claimants. Furthermore, receiving monthly payments allows you to invest the funds, potentially increasing their value and ensuring financial stability for you and your family.

People Who Could Receive Benefits on Your Record Won’t Be Eligible

When benefits are suspended or delayed, no one else, except a divorced spouse, can obtain them on your behalf. The SSA further states, “Any benefits you receive on someone else’s record will be suspended.”

Also See:- This is the foolproof way to know when you need to claim your Social Security benefits in 2025