This question is for those who have personal experience or those who actually know (Fed161). I understand that, when you start collecting SS and stop working, you get a fixed monthly amount, and, let’s just say $3k as an example. Now, if you decide to continue working, the monthly SS check will be less. Question is, will that lesser amount vary depending on how much you work, or is it fixed, but less than the amount without working?

For example, if I bring in $2k from work in January, the SS check will be $2k, and if I bring in $3k from work in February, the SS check will be $1k? If I don’t work in March, will the SS check be $3k?

Please note the numbers are examples only and are not based on any real life scenario.

The subtraction only takes place if you retire between the age of 62 and the date that has been designated as your full retirement age.

In my case I retired at 65 and 4 months instead of waiting until I was 66, my full retirement age

IIRC if I earned in excess of 1680 per month I would be penalized by losing 1 dollar of SS benefits for each 2 dollars I made over the 1680 figure. But that was only until I reached 66, then I could make as much as I wanted to without the penalty.

I dont think it works that. I believe you can earn so much with out it affecting your benefit. Once you pass that amount of earned income it does negatively affect your benefit check.

This link may help explain what you are asking about.
https://www.msn.com/en-us/mone...8a0a40&ei=58#image=5

Answer might depend on whether you have reached your full retirement age. Fed or others may need to know before providing a better answer.

My FRA is 67. I’m 65 + five months.

Thanks, McGregor, for the link. That answers my question. And, thanks, everyone else.

I want to point out that the earnings limitations only apply to earned income, ie salary or wages from a job. There is no restriction on the amount of unearned income, such as interest income, rental income, and capital gains.

For example, if you own a small business and take a salary, if you own the real estate you may be able to pay yourself rent and reduce the salary to below the SSA limits.

quote:

IIRC if I earned in excess of 1680 per month I would be penalized by losing 1 dollar of SS benefits for each 2 dollars I made over the 1680 figure. But that was only until I reached 66

This is what will happen but the $1 penalty is before SS, Medicare & Income taxes. The actual penalty will be much higher and depends on your Income tax rate. The penalty will come in the form of an election letter from SS telling you how much will be deducted from your SS until the penalty is paid.

Until I reached 66 I kept a pretty tight reign on how much I earned. But that was only for eight eight months.

When I checked at 65 I was told my benefit was $X per month but my maximum earnings outside SS was $22,800 per year before it impacted my benefit.

My FRA age was deemed to be 66 years and 10 months which is next February. I will get incrementally more per month but I will not have any restrictions on additional earnings.

The other issue is that you lock in a lower monthly SS check for life by filing early, and that could be a lot more in the long run.

FYI pensions and 401k do not count towards your max limit (and reduction of benefits). I am still 6 years from “early” retirement but I am looking at things closely.

As others have stated correctly here, the answer to your question about earnings after you collect Social Security depends entirely on your full retirement age (AKA FRA). After your FRA, you can earn as much as you want with no affect on your SS benefits. If you have not yet attained FRA, the link provided by McGregor has accurate information.

As has also been stated correctly here, income such as pensions, IRAs and other investment income never has any affect on your Social Security benefits.

I hope your questions have been answered here. Feel free to post any follow up questions if you have any. I'll check back in a day or two to see if you do have any follow up questions. Enjoy your retirement!

When you reach full retirement age and still working, you collect your full Ss benefit but you pay taxes on SS: here is the description:
Single, head of household, or qualifying surviving spouse: If your combined income is less than $25,000, none of your Social Security benefits are taxable.

Between $25,000 and $34,000, up to 50% of your benefits may be taxed.
Above $34,000, up to 85% of your benefits may be taxed.

Married filing jointly: If your combined income is less than $32,000, none of your Social Security benefits are taxable.

Between $32,000 and $44,000, up to 50% of your benefits may be taxed.
Above $44,000, up to 85% of your benefits may be taxed.

Married filing separately: If you lived with your spouse at any point during the tax year, your tax-free threshold is $0, and up to 85% of your benefits will be taxable

This is the 2025 numbers. For 2026, this changes considerably. We may pay zero taxes on our SS benefits as Trump has intimated.

In my case, I 'retired' at 62, but it didn't take. I went back to work at a lower pay, lower stress job and did not file until I was 67 and a couple of months old.
My 'full retirement age' was 66y 7mos, and when I finally decided to pull the trigger, they gave me two options.

Option #1 - start collecting immediately, and get $X per month going forward. Plus get a retro check of all the months accrued since my FRA. That worked out to be about $22K.

Option #2 - start collecting $X per month immediately, and for the remainder of 2024.
Starting in 2025, get a monthly check for $X + about a hundred bucks more moving forward. No retro check.

Wasn't a hard choice - I took the cash up front.