Can you lose SSDI benefits? Unfortunately, the answer is yes. However, understanding the risks and taking the right steps can help protect your financial security.
Below are the most common reasons benefits may be discontinued—and how we can help you maintain the support you rely on.
Social Security Disability Insurance (SSDI) provides critical financial assistance for individuals who cannot work due to a disability. However, these benefits are not always guaranteed for life. Certain changes in your circumstances—such as returning to work, medical improvement, or even legal issues—can reduce or terminate your payments.
Understanding how and why SSDI benefits can stop is essential for protecting your financial future. Below, we outline the key reasons benefits may be discontinued and what steps you can take to avoid unexpected loss.
Returning to Work and Earning Income Above the Limit
SSDI is meant for individuals who cannot work due to a disability, but if you return to work and earn too much, your benefits may be at risk.
The Social Security Administration (SSA) uses Substantial Gainful Activity (SGA) limits to determine if a person is still considered disabled. In 2025, the SGA limit is $1,620 per month for most individuals and $2,700 per month for those who are blind. If you consistently earn more than this, the SSA may decide that you no longer qualify for SSDI.
However, the SSA does offer a Trial Work Period (TWP), which allows recipients to see if they are able to work for up to nine months within a rolling five-year period without losing benefits. Benefits may stop if you continue working after the trial period and exceed the earnings limit. On the other hand, if your disability prevents you from maintaining employment, you may qualify for expedited reinstatement of SSDI.
Reaching Full Retirement Age
Once you reach full retirement age, SSDI automatically converts to Social Security retirement benefits—but there is no financial loss.
SSDI is designed for individuals who cannot work due to a disability before retirement age. Once recipients reach their full retirement age (FRA)—typically 66 or 67—their SSDI benefits automatically convert to Social Security retirement benefits.
While the classification of the benefit changes, the amount remains the same, so there is no reduction in payments. However, it is important to note that you cannot receive SSDI and retirement benefits simultaneously—your disability benefits will transition to retirement benefits.
Medical Improvement and SSA’s Disability Reviews
The SSA periodically reviews your condition to determine whether you still qualify for SSDI.
When you are approved for SSDI, the SSA categorizes your condition based on the likelihood of medical improvement and schedules Continuing Disability Reviews (CDRs) accordingly:
- 6 to 18 months after approval if improvement is expected
- Every 3 years if improvement is possible
- Every 7 years if improvement is unlikely
If medical evaluations show you can return to work, the SSA may stop your benefits. It is essential to comply with all medical review requests and report any significant changes in your condition to avoid potential issues.
Incarceration and Legal Issues
If you are incarcerated for more than 30 days following a conviction, your SSDI benefits may be suspended or even terminated.
The SSA suspends SSDI payments if a recipient is incarcerated for more than 30 consecutive days. Benefits are completely terminated if the sentence lasts over 12 months, and the individual must reapply after release.
However, SSDI benefits can often be reinstated once the individual is no longer incarcerated, though this is not automatic—an application for reinstatement is required. Additionally, individuals on parole or probation may still be eligible for SSDI unless they violate conditions that result in re-incarceration.
Can You Lose SSDI Benefits?
Yes, it is possible to lose your SSDI benefits, which can be financially devastating, but there are steps you can take to protect your payments and avoid unexpected termination:
- Monitor your earnings: If you plan to return to work, be aware of SGA limits and take advantage of trial work periods before exceeding income thresholds.
- Comply with SSA reviews: Attend all medical evaluations and promptly respond to SSA requests for information to maintain eligibility.
- Report life changes: Inform the SSA of any changes in your health, work status, or legal situation to avoid overpayments or unexpected benefit cuts.
- Consult an expert: If you are unsure about SSDI rules or receive a termination notice, a disability attorney can help you navigate the process and appeal decisions.
Need Help? Contact a Social Security Disability Attorney
Navigating SSDI eligibility rules can be overwhelming, especially if you risk losing your benefits. If you are asking, “Can you lose SSDI benefits?” or if your SSDI payments have been reduced or stopped, a Social Security Disability attorney can provide guidance.
- Appeal a termination decision and fight for reinstatement.
- Understand SSA regulations and how they apply to your situation.
- Ensure compliance with reporting requirements to avoid benefit loss.
If you need assistance, do not wait until your benefits are at risk. Contact our team today for a consultation. Together, we can protect your financial stability and future.