2 Things Could Happen to Your Social Security if You Keep Working After Retirement
2 Things Could Happen to Your Social Security if You Keep Working After Retirement
2 Things Could Happen to Your Social Security if You Keep Working After Retirement
As you approach retirement age, it's essential to understand how your social security benefits might be affected by continuing to work. Here are two things that could happen:1. Your Benefits Might Be Reduced
- If you continue working after retirement and earn more than the annual earnings limit ($19,560 in 2022), your social security benefits may be reduced or delayed.
- This is because the Social Security Administration (SSA) considers earned income above this threshold as a reduction of benefits. The SSA will use a formula to calculate the exact amount by which your benefits are reduced.
2. Your Benefits May Be Delayed
- If you're still working and earning more than the annual earnings limit, you may not be eligible for full retirement benefits until age 70, even if you've already reached the full retirement age of 67.
- This could mean a delay in receiving your social security checks, which could impact your financial planning and budgeting during retirement.
While it may seem counterintuitive to reduce or delay social security benefits, it's essential to understand how continuing to work can affect these payments. By knowing the potential implications, you can make informed decisions about when and how to file for benefits.
Planning Your Retirement?
Consider checking your credit score before retirement to ensure you're prepared for any financial changes that may come with aging. Our Financial Health Kit is a great place to start, complete with tools to help track and manage your finances.
Stay Informed on Retirement Planning
For more information on social security benefits and retirement planning, we recommend checking out our article on Retirement Age: How It Affects Your Benefits.
