Adriene S. Says:
How does earning online after retirement impact your Social Security payments?
IL Social Security Expert Steve Garfink Says:
Hi Adriene—and thanks for your question!
If you start collecting Social Security after your Full Retirement Age (FRA: an age between ages 66 and 67, depending on your birth year), then your benefit payments will not be affected no matter how much you earn.
But if you start Social Security before FRA, then your benefit amount may be reduced. In 2023 for instance, there’s no reduction if your earnings are under $21,240. But for each $2 you earn above that amount, your benefit is reduced by $1, up to the point where your benefit is reduced to zero.
This situation arises most frequently when people start their benefit early—when they earn little or no money—then later find a job that exceeds the minimum threshold. It’s therefore important to notify the Social Security Administration if you suspect your income may exceed the minimum: otherwise, they’ll come back to you and demand repayment of any excess benefit received.
The good news is that if you find your benefit reduced or eliminated under this rule, your base benefit amount will be increased when you reach your FRA to make up for it.
It has a similar effect to claiming Social Security later in the first place: If you follow my articles and presentations, then you know why it’s usually better in the long run to wait!
To learn much more about how to maximize your benefits from Social Security—and how it works with earning an income—you can pick up a copy of my book, Social Security Secrets: How to Maximize Your Income for a Worry-Free Retirement, in the IL Bookstore here.
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