What Happens to My SSI When I Turn 65?

Supplemental Security Income (SSI) is a federal program designed to provide financial assistance to aged, blind, and disabled individuals who have limited income and resources. It serves as a safety net for those who meet its strict financial and non-financial eligibility criteria.

SSI Eligibility and Reaching Age 65

Turning 65 does not automatically discontinue or alter an individual’s eligibility for Supplemental Security Income (SSI) benefits. The program allows individuals to qualify if they are age 65 or older, or if they are blind or disabled at any age.

Changes in SSI benefits around age 65 typically stem from new income sources that may become available at this stage of life. These potential changes are related to how other income is counted, rather than a change in the age-related SSI rules themselves.

How Other Income Affects SSI Benefits

The receipt of other income, particularly Social Security retirement benefits, often impacts SSI payments for individuals reaching age 65. SSI considers both earned income, such as wages from work, and unearned income, like Social Security benefits, pensions, or gifts. The Social Security Administration (SSA) applies specific rules to determine how much of this income counts against an individual’s SSI benefit.

For 2025, the maximum monthly SSI payment, known as the Federal Benefit Rate (FBR), is $967 for an individual and $1,450 for an eligible individual with an eligible spouse. The SSA excludes the first $20 per month of most unearned income. For earned income, the first $65 is excluded, along with half of the remaining earned income.

Social Security retirement benefits are typically considered unearned income for SSI purposes. After applying the $20 general income exclusion, any amount of Social Security retirement benefits received generally reduces the SSI payment dollar-for-dollar. For example, if an individual receives a Social Security retirement benefit of $500 per month, after the $20 exclusion, $480 would be counted as income. This $480 would then reduce their SSI payment by the same amount.

Receiving Social Security retirement benefits can significantly reduce an individual’s SSI payment, potentially to zero if the retirement benefit is high enough to exceed the SSI Federal Benefit Rate plus any state supplement. SSI is a needs-based program funded by general tax revenues, while Social Security retirement benefits are earned through an individual’s work history and funded by payroll taxes.

Healthcare Coverage for SSI Recipients at Age 65

Turning 65 typically makes individuals eligible for Medicare Parts A and B, provided they or their spouse have sufficient work history. Medicare Part A primarily covers inpatient hospital stays, while Part B covers doctor services and outpatient care. For most SSI recipients, Medicare eligibility at 65 means navigating an interplay between Medicare and Medicaid.

In most states, SSI recipients are automatically eligible for Medicaid. Medicaid provides comprehensive health coverage, ensuring a continuous safety net for medical needs. The interaction between Medicare and Medicaid is particularly beneficial for low-income seniors.

Medicare Savings Programs (MSPs) are state-administered programs that help cover Medicare costs for individuals with limited income and resources, including many SSI recipients. These programs can pay for Medicare Part A and/or Part B premiums, deductibles, and co-insurance.

The Qualified Medicare Beneficiary (QMB) program, a type of MSP, is especially beneficial as it pays for Medicare Part A and B premiums, deductibles, co-insurance, and co-payments. Individuals enrolled in MSPs are also automatically entitled to “Extra Help” to cover Medicare prescription drug costs.

Reporting Requirements for SSI Recipients

Timely and accurate reporting of changes to the Social Security Administration (SSA) is an important responsibility for all SSI recipients. Failure to report can lead to overpayments, which must be repaid, or underpayments. Penalties, such as reductions in SSI payments ranging from $25 to $100, can be imposed for late reporting.

Recipients must report various changes that could affect their eligibility or payment amount. This includes new sources of income, such as Social Security retirement benefits, changes in earned or unearned income, and changes in resources. Other important changes to report include shifts in living arrangements, marital status, and changes in the value of owned assets.

Changes should be reported as soon as possible, and no later than 10 days after the end of the month in which the change occurred. Reporting can be done through several methods: by calling the SSA’s toll-free number, visiting a local SSA office, sending information by mail, or using online services or mobile applications for wage reporting. Even if a change is not reported within the designated timeframe, it is still important to report it to the SSA.