If you continue to work while receiving Social Security benefits
A number of folks have been asking me about what would happen to their Social Security benefits, if they continue to work after they begin receiving their SS Retirement Benefits. So, I thought it would be helpful to show you how you can calculate the reduced benefit amount (if any), based on your Social Security Retirement Benefit amount and earned income. Here’s how:
If you are under your Full Retirement Age (which is age 66, if you were born between 1943 – 1954, or you’ll need to add two months for each year until the year you were born in) for the entire year, Social Security will deduct $1 from your benefit amount for every $2 you earn above the annual limit; which is $17,040 for 2018.
Now, in the year you reach your Full Retirement Age the amount is calculated differently. In that year only, Social Security will deduct $1 from your Social Security benefit amount for every $3 you earn above a different earnings limit, which in 2018, is $45,360.
Once you reach your Full Retirement Age, their is no reduction in your Social Security benefits, regardless of how much outside income you earn. And, by the way, if Social Security does reduce your benefits before your Full Retirement Age, they will give it back to you over time, once you reach your “FRA”….but that’s for a different blog!