How the Rules Work for You
Reading Time: 2 MinutesLast Updated: July 12, 2018
Retirement doesn’t have the same meaning for everyone. Some people plan to retire and never work again. Some people plan for second careers in occupations that wouldn’t have adequately supported their families, but they do the work for pure enjoyment. Some people, whether by design or desire, choose to work part-time or seasonally to supplement their retirement income.
Retirees (or survivors) who choose to receive Social Security benefits before they reach full retirement age (FRA) and continue to work have an earnings limit. In 2017, the annual earnings limit was $16,920 for those under FRA the entire calendar year. In 2018, it is $17,040. If you earn over the limit, we deduct $1 from your Social Security monthly benefit payment for every $2 you earn above the annual limit.
In the calendar year you reach FRA, which you can check out on our website, you have a higher earnings limit. Additionally, we will only count earnings for the months prior to FRA. In 2017, the limit was $44,880. In 2018, it is $45,360. In the year of FRA attainment, Social Security deducts $1 in benefits for every $3 you earn above the limit.
There is a special rule that usually only applies in your first year of receiving retirement benefits. If you earn more than the annual earnings limit, you may still receive a full Social Security payment for each month you earn less than a monthly limit. In 2018, the monthly limit is $1,420 for those who are below FRA the entire calendar year. The 2018 monthly limit increases to $3,780 in the year of FRA attainment.
Once you reach FRA, you no longer have an earnings limit, and we may recalculate your benefit to credit you for any months we withheld your benefits due to excess earnings. This is because your monthly benefit amount is calculated based on a reduction for each month you receive it before your FRA. So, if you originally filed for benefits 12 months before your FRA, but earned over the limit and had two months of Social Security benefits withheld, we will adjust your ongoing monthly benefit amount to reflect that you received 10 months of benefits before your FRA, and not 12.
Most people understand that if they work while receiving benefits before FRA, their benefit may be reduced. What most people do not consider in their retirement planning is that we recalculate your Social Security monthly benefit at FRA to credit you for Social Security benefit payments withheld due to earnings over the limit. Explaining the earnings limit is another way that Social Security helps secure your today and tomorrow. Understanding both the earnings limit and the possible recalculation of your ongoing Social Security benefits will provide an additional perspective on retirement for you to consider.
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Tags: full retirement age, retirement, retirement benefits, survivors benefits
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Jim Borland, Acting Deputy Commissioner for Communications
Jim Borland, Acting Deputy Commissioner for Communications
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Vannissa S.
I have been trying to reach someone to talk to them about a payment plan on repaying my Social Security can someone please contact me and help me with this
V.V.
Thank you for contacting us, Vannissa. Unfortunately, and because of security reasons, we do not have access to personal records in this blog and cannot assist you.
To request “partial withholding of your benefits” to repay the overpayment, you will have to contact your local office or call our toll-free number at 1-800-772-1213. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m.
Lynne
Do you gain more in benefits for every month you delay drawing after age 62? In other words, will I draw more if I wait 8 months after turning 62 to draw my SSA than I would if I drew at 3 months after turning 62?
A.C.
Hi, Lynne. Delaying your benefit will increase your monthly benefit amount. For more information, check out our publication, Your Retirement Checklist. We hope this helps.
Steve F.
Thank you for the post. I just want to make sure I got it right. On February 22nd 2020 I will reach full FRA. If I claim in March of 2020, I will not have reached the $45,000 salary cap. Does this mean in March of 2020 I can start my FRA my benefit and earn as much as I can?
Also starting in calendar year 2021 and beyond, can I earn as much as I can with no penalty
Thanks for helping me to get it right.
A.C.
Hi, Steve. If you work and are full retirement age or older, you may keep all of your benefits, no matter how much you earn, starting with the month you reach your full retirement age. However, if you are younger than full retirement age and make more than the yearly earnings limit, this can reduce the number of payments you receive through the year. For 2017 that limit is $17,640. If you applied and received benefits prior to attainment of full retirement age, and work part-time thereafter you will be considered “retired” only if your monthly earnings are $1,470 or less. Also, if your earnings will be over the limit for the year but you will be retired for part of the year, we have a special rule that applies to earnings for one year. Please visit our Retirement Planner: Getting Benefits While Working for more information. If you have specific questions about your situation, please call our toll-free number at 1-800-772-1213 and speak with one of our agents. Representatives are available Monday through Friday, between 7:00 a.m. and 7:00 p.m. Or contact your local Social Security office directly. We hope this helps.
Robert M.
how do go about spending my till a later date. I am collecting now but want to stop and wait till later on to collect. I am 67 now
V.V.
Thank you for the question, Robert. Because you have reached your full retirement age, and you are not yet age 70, you can suspend your benefits to earn delayed retirement credits. Just know that anyone receiving benefits on your record (excluding divorced spouses) will also be suspended for the same months you request suspension. Visit our Suspending Retirement Benefit Payments web page for details on the process.
You can request suspension of your benefits by calling us at 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. to 7 p.m., Monday through Friday or by contacting your local Social Security office.
warren r.
hello when I turn 66 is their a limit on income
Debra G.
I would like a call back to further discuss how benefits may be withheld if I earn too much before FRA. My number is+18128209207
Thank You,
Debra Gilbert
A.C.
Hi, Debra. For your security, we do not have access to private information in this venue. We ask that members in our Blog community work with our offices with specific questions. You can call us at 1-800-772-1213, Monday through Friday, between 7:00 a.m. and 7:00 p.m., for assistance. Generally, you will have a shorter wait if you call later in the day. You can also contact your local Social Security office. Just a reminder – please be cautious about posting personal information on social media. We hope this helps.
Danny S.
My wife was deemed ineligible for SS benefits.
But she has worked on and off through the years, what are the work requirements for her own SS benefits?
Raphael
I would like to retire at age 62 based on my earnings record. I am also eligible for spousal benefit but not until I am 65 (when my spouse reaches his FRA). My retirement age is 66 and 6 months.
Will the spousal benefit reduction be based on my age at the time of spousal benefit eligibility (65) or based on my early retirement age (62)?
V.V.
Hi Raphael, thank you for your question. If you begin receiving spouses benefit between age 62 and your full retirement age, the amount will be permanently reduced by a percentage based on the number of months up to your full retirement age.
chester w.
I have worked part time just a few days a month. I was told that I can earn up to a certain amount and not have it effect my ssa, what is the amount?
how do I report it, I cant find a way.
do you wait and get employers statements on me ?
do I not worry about reporting anything until I have earned so much?
I cant find answers
A.C.
Hi, Chester. Thanks for your question. If you are receiving retirement benefits, check out how work affects Social Security payments by viewing our publication, How Work Affects Your Benefits.
If you are referring to Social Security disability benefits, special rules allow you to work temporarily without losing your monthly Social Security disability benefits. After your nine-month trial work period, we still provide a safety net that allows you to work another three years risk free. During those three years, you can work and still receive benefits for any month in which your earnings do not exceed a certain limit. For 2019, those limits are: $2,040 for blind individuals; or $1,220 a month if you are not blind. For more information on working while receiving Social Security disability benefits, learn more information by reading our publication, “Working while Disabled- How We Can Help.” We hope this helps.
Sherry S.
How much can I earn on SSDI