Here are some things to consider when you qualify for Social Security but are still earning income for a job or other sources. Currently, the full benefit age is 66 for people born in 1943-1954, and it will gradually rise to 67 for those born in 1960 or later. The good news is you can still make extra income while collecting social security. But before you hit your full retirement age, your social security benefits will be affected if you do work and collect a paycheck.
First of all, there is no limit to what you are allowed to earn while taking social security but the Social Security administration will tell you:
- We use the following earnings limits to reduce your benefits: If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.
For 2017 that limit is $16,920.
- In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age.
If you will reach full retirement age in 2017, the limit on your earnings for the months before full retirement age is $44,880.
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.
Use our Retirement Age Calculator to find your full retirement age based on your date of birth.
Use our Retirement Earnings Test Calculator to find out how much your benefits will be reduced.