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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Shir
By GOD’s grace, I will reach FRA within 7-6 months. I have been told that I can begin receiving social security checks prior to my actual FRA date for X number of months as I am allowed to go back (prior to my. FRA date)… Please explain how this works.
Shir’
Ann C.
Hi, Shir. Thanks for your question. Your payment amount is based on when you decide to start your benefits, once you have reached your age of entitlement. If you choose to get benefits before full retirement age, they will be reduced. Your benefits are reduced a fraction of a percent for each month before your full retirement age. The reduction factors are permanently applied to all of the benefits for which the person may qualify. For more information, visit our Benefits Planner: Retirement. We hope this helps.
Annette S.
Hi,
I will turn 62 Aug 7, 2019 and have applied for SSI. I received a letter telling me that my monthly benefits begin Sept 2019 & I will receive my first check in October. Why does it say my benefits begin in Sept & not August when I turn 62?
Ann C.
Hi, Annette. To begin receiving reduced retirement benefits at 62, you are required to be age 62 for the entire month. For Social Security purposes, individuals born on the first or second day of the month are considered age 62 for the “full” month and could be entitled to benefits for the month of their 62nd birthday. Retirement benefits are paid the month after they are due. So, for instance, if your want your benefits to begin with the month of September, you will receive your first benefit payment in October. The exact payment date is determined by your date of birth. We hope this helps.
Sue A.
So I can work Part time and make up to 1500.00 a month and how many hours would that be per week? or can you let me know what I can make monthly and how many hours part time I can work please?
Ann C.
Hi, Sue Ann. Thanks for your question. If you are receiving retirement benefits, check out how work affects Social Security payments here.
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, visit our Frequently Asked Questions.
Whether you are receiving Social Security or Supplemental Security Income (SSI), you may be able to work. Learn more information by reading our publication, Working while Disabled- How We Can Help. We hope this helps.
Kathleen A.
My girlfriend got a letter that says she will not be getting her social security payment 1 day before it was due in her bank.
She doesn’t understand why it was stopped. She tried calling and someone told her it was because she did not pay for Medicare. Social Security has been taking it out for years. It was not stopped. She called Medicare and they said that it did not make sense. Now Social Security says they will check it out but she will not be able to receive her payment until August. How is she suppose to pay her rent for this month?
Ann C.
Hi, Kathleen. We are sorry to hear about your girlfriend’s situation. For her security, we do not have access to private information in this venue. We ask that members in our Blog community to continue to work with our offices with specific questions. She can call us at 1-800-772-1213, Monday through Friday, between 7:00 a.m. and 7:00 p.m., for assistance. Generally, she will have a shorter wait if she calls later in the day. She can also contact her local Social Security office. She can ask to speak to a supervisor on her next visit or call. We hope this is resolved soon.
Maricel M.
I just turned 60 and will collect SS at 62. I am not going to work any more. How can I figure my age 62 benefit?
Pamela J.
What is the new earnings limit for 2020. I know 2019 is $17600.
Ann C.
Hi, Pamela. We do not know the earnings limits for 2020 yet. If you are under your full retirement age and working while receiving benefits, the earnings limit in 2019 is $17,640. Check out how work affects Social Security payments here. We hope this helps.
Marian M.
I will be 65 this year. Can I apply for Medicare even without having reached 40 work credits? My spouse is collecting his retirement benefits at full retirement age and I have already applied for a spouse benefit.
Luis A.
Good question, Marian! Under certain conditions, a spouse may be eligible for Medicare when the spouse turns 65, based on the other spouse’s work record. To learn more about Medicare, who is covered, and how to apply, read our publication titled “Medicare.” Keep in mind, if you are already getting Social Security spouse benefits, you will be enrolled in Medicare Parts A and B automatically. If you have additional 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. We hope this helps.
Barbara J.
How do you enroll for silver sneakers?
Faye
When my spouse and I file for social security benefits at FRA, my amount will be greater than his. If he is going to get %50 of mine, how will that affect my check. For example if his benefit is $1700 and mine is $3000, how much will we each get. I need this info for budgeting purposes.
Ann C.
Hi, Faye. Keep in mind, if your husband qualifies on his own record, we will pay that amount first. But if he also qualifies for a higher amount as a spouse, he’ll get a combination of benefits that equals that higher amount. In your proposed example, if he is eligible for $1700 on his own, and your benefit is $3000, he would not be eligible for spouse’s benefits since his own is greater than 50 percent of yours-the most he could receive as a spouse at full retirement age. Find more information at our Retirement Planner: Benefits For Your Spouse. We hope this helps.
DuWayne E.
How do I enroll in the Silver Sneakers program?