Indeed, you can collect Social Security retirement benefits while working. Thus, it is conceivable to perform both things at the same time, but there are a few considerations. Especially if you have not yet achieved full retirement age (FRA). If your earnings exceed the annual threshold set by the Social Security Administration, your benefits may be decreased.
To prevent having your monthly benefit payments cut, do not exceed the annual earnings limit. However, those retirees whose benefits begin the month they reach standard retirement age will not have their benefits decreased, regardless of the amount received.
What are the earnings limits Social Security has set?
Bear in mind that the Social Security Administration’s limits for 2024 are:
- Retirees under Full Retirement Age for the whole year: SSA deducts 1 dollar from your retirement benefit payment for every 2 dollars you get over the yearly limit.
- This yearly limit is $22,320 in 2024
- Retirees that reach Full Retirement Age in 2024, SSA deducts 1 dollar in retirement benefits for every 3 dollars you get over a higher limit. Of course, SSA will only count earnings before your Full Retirement Age birthday.
- This yearly limit is $59,520
What if I start working when I reach Social Security’s FRA?
Those retirees who begin working when they reach Full Retirement Age have no restrictions. As a result, they will be able to receive monthly benefit payments while also having no wage limits or reductions.
Some Americans believe that the Full Retirement Age is 65, yet this was true for several generations ago and is no longer the case. So you should use the Social Security Administration’s Retirement Age Calculator. Go to https://www.ssa.gov/benefits/retirement/planner/ageincrease.html.
Once you’ve determined your age, which is normally 67 if you were born in 1960 or later, use the Retirement Earnings Test Calculator to see how much your monthly benefit payment will be decreased. Visit https://www.ssa.gov/OACT/COLA/RTeffect.html.
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