How Returning to Work Impacts Social Security Benefits
The ins and outs of working while receiving Social Security, including 2020’s new higher limits on how much you can make without getting penalized.
Retired at last! You start Social Security payments, glad to finally be free of the 9-to-5 routine. But then life changes, and you realize you need more income than your monthly government check provides. Or you surprise yourself by becoming bored, and take a part-time job to have a little something to do. Maybe you are managing just fine, but an interesting offer comes up for consulting, or employment at the company of your dreams. These and other scenarios may incentivize you to work while receiving Social Security benefits. Here is what you should know about potential reductions to benefits while you are earning income.
Age is Key
If you have already reached full retirement age (FRA) when you claim benefits and/or return to work, then you can earn any amount without penalty. Check the chart below for your FRA.
|Year of Birth||Full Retirement Age|
|1943 to 1954||66|
|1955||66 and 2 months|
|1956||66 and 4 months|
|1957||66 and 6 months|
|1958||66 and 8 months|
|1959||66 and 10 months|
|1960 or later||67|
Data from Social Security Administration
Reduction is Temporary
Click below for the other articles in the January 2020 Senior Spirit