Navigating Work and Social Security Retirement Benefits: Your Comprehensive Guide
Welcome to our blog, where we simplify the intersection of work and Social Security retirement benefits. Whether you’re nearing retirement, contemplating how continued employment might affect your benefits, or just seeking to understand the intricacies of Social Security, we’ve got you covered.
8/16/20242 min read
What happens if I work and get Social Security retirement benefits?
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, They will reduce your benefits. Starting with the month you reach full retirement age, they will not reduce your benefits no matter how much you earn.
They use the following earnings limits to reduce your benefits:
If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.
For 2024 that limit is $22,320.
If you will reach full retirement age in 2024, the limit on your earnings for the months before full retirement age is $59,520.
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.
Use the Retirement Age Calculator to find your full retirement age based on your date of birth.
Use the Retirement Earnings Test Calculator to find out how much your benefits will be reduced.
What counts as earnings:
When they figure out how much to deduct from your benefits, they count only the wages you make from your job or your net earnings if you're self-employed. They include bonuses, commissions, and vacation pay. They don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits.
Your benefits may increase when you work:
As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit. If there is an increase, They will send you a letter telling you of your new benefit amount.
When you’re ready to apply for retirement benefits, use their online retirement application, the quickest, easiest, and most convenient way to apply.
More Information
How Work Affects Your Benefits
Examples: How We Deduct Earnings From Benefits
