Working while you are retired can make a difference in boosting your income and is a good way to fill your days. And having a job, even a part-time one, often helps with the transition from worker to retiree. However, there is a limit to what older workers can make and still receive full Social Security benefits. See: Can I Draw Social Security At 62 and Still Work Full Time? According to the Social Security Administration, you are considered retired once you begin receiving Social Security retirement benefits. Upon reaching full retirement age — 66 or 67 depending on if you were born before or after 1960 — you don’t have to worry about work earnings affecting your benefits. That’s one of the bonuses of waiting: You can earn as much as you want without the penalty of having your Social Security income withheld. If you’re under the full retirement age, however, the annual earnings limit is $19,560 for 2022. If you earn more than this, the SSA will deduct $1 for every $2 you have earned above the limit. In the year that you reach the age of full retirement, the deduction will be $1 for every $3 you earn above the limit. In 2022 the limit stands at $51,960. The earnings calculation is made up to the month before the month you reach retirement age, not your total yearly earnings. The SSA gives examples to illustrate both scenarios. Say you are younger than the full retirement age for a full year and are due to receive $800 a month, or $9,600 per year, in benefits. If you work and earn $29,560, which is $10,000 over the $19,560 limit, your Social Security benefits would be reduced by $5,000 — $1 for every $2 over the limit. So, you would receive $4,600 of your $9,600 in benefits for the year. Using the same hypothetical benefit amount, say you reach full retirement age in August, and you make $63,000 during the year, with $52,638 of it in the seven months from January through July. That would be $678 over the $51,960 limit. Your Social Security payments would be reduced by $226 in January through July — $1 for every $3 you earned above the limit. Story continues Come August, when you reach full retirement age, you would receive your full benefit regardless of what you earn. When the SSA calculates how much to deduct from your benefits, it counts the wages you make from your job or, if you are self-employed, your net profit, including bonuses, commissions and vacation pay. It doesn’t count pensions, annuities, investment income, interest, veterans benefits or other government or military retirement benefits, according to the SSA’s “How Work Affects Your Benefits” publication. Discover: 10 Best Countries To Live on Just a Social Security Check It should be noted that the benefits you lose when you are under full retirement age are not lost completely. You’ll receive previously withheld benefits after you reach your full retirement age. However, drawing Social Security benefits early means lower benefits later in life. More From GOBankingRates
This article originally appeared on GOBankingRates.com: How Much Can I Earn In 2022 and Still Collect Social Security? It depends on the year you were born and how long until you reach full retirement age, abbreviated as FRA. That's the age at which you would collect 100 percent of the monthly benefit payment Social Security calculates from your lifetime earnings history.  AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. Join Now Retirement benefits are designed so that you get the full benefit if you wait until full retirement age, which is 66 and 4 months for people born in 1956 and is gradually rising to 67 for those born in 1960 or later. If you file early, Social Security reduces the monthly payment by 5/9 of 1 percent for each month before full retirement age, up to 36 months, and 5/12 of 1 percent for each additional month. Suppose you will turn 62, the earliest age to claim retirement benefits, in 2022. For people born in 1960, full retirement age is 67. Filing at 62, 60 months early, permanently reduces your monthly benefit by 30 percent. If you would have been entitled to $1,000 a month at full retirement age, you will get $700 if you start benefits when you turn 62. How much money can you make when you're on Social Security at 62?If you will reach full retirement age in 2022, the limit on your earnings for the months before full retirement age is $51,960. Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.
What happens if you retire at 62 instead of 65?A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent. Starting to receive benefits after normal retirement age may result in larger benefits.
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How much can you make if retire at 62
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