Question on working and collecting social security benefits before full retirement age?
I found this on aarp webiste
The earnings limits are adjusted annually for national wage trends. In 2020, you lose $1 in benefits for every $2 earned over $18,240. If you have a part-time job that pays $25,000 a year — $6,760 over the limit — Social Security will deduct $3,380 in benefits..
I am not very clear on it. If I make $58,240 per year which is $40000 over the limit then as per the above statement I lose $20000 per year. If my social security payment is $18000 per year, does it mean I dont get anything? So there is no point in applying for the benefits before the retirement
- EvaLv 71 month ago
Exactly. There's no point applying for benefits until your full retirement age if you are that far over the earnings limit. Your benefit will also be more if you wait. The year you reach full retirement age, the earnings limit is higher but you are still way over.
- 1 month ago
That is what it means, yes. There is really no point in applying prior to retirement.
- Max HooplaLv 71 month ago
If you make $58,240 you will get zero in Social Security benefits.
- JudyLv 71 month ago
True, you'd get nothing. If you're going to work at a low-paying job, it might be worth it. If you're going to work at a higher-paying job, makes more sense to defer taking benefits.
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- StephenWeinsteinLv 71 month ago
Even if you did get something, it wouldn't make sense to apply. You get more per year if you start collecting later. It only makes sense to collect early if you expect to die soon or if you need the money soon (which you don't if you're making almost $60,000 a year).
- A.J.Lv 71 month ago
You can check with them, but the key is not taking benefits before full retirement age.
Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn. The penalty is against taking early benefits.