Can I work and still get Social Security retirement benefits?
It is possible but working while receiving retirement benefits could lead to a reduction in the size of your Social Security checks.
With the inflation crisis biting purse strings up and down the land, many people who had previously retired may be thinking about rejoining the workforce to keep their head above water. While not necessarily good news, considering the circumstances, it is possible for seniors to work and receive their Social Security benefits.
A potential long-term benefit of working while receiving retirement support is that it could change the size of your benefit. the Social Security Administration (SSA) will calculate each individual’s average indexed monthly earnings across the 35 highest-earning years. If you end up earning more even when you have retired, then your benefits will be amended to reflect this.
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However, there are limits on how much you can earn if you are not at the full retirement age, which is 67 years-old.
What are the limits on work and retirement benefits?
If you are under the age of 67, there is a limit on how much you can earn in a year before your benefits are reduced. For 2022, the annual earning limit is $19,560.
If you earn over this threshold, the SSA will reduce your benefits payments by $1 for every $2 you earn over it.
If you will reach full retirement age in 2022, the limit on your earnings before penalties will be $51,960. If you earn over this limit after reaching full retirement age, the SSA will deduct $1 in benefits for every $3 you earn above a different limit. However, this only counts earnings before the month you reach your full retirement age.
What counts as earnings?
Only the wages you make from your job or your net earnings if you’re self-employed are counted as earnings.
This means a lot of money that seniors would usually rely on are exempt from this cap, including pensions, annuities, investment income, interest, veterans, or other government or military retirement benefits.