You can collect Social Security benefits while working at the same time, but there are numerous restrictions that you need to be aware of before making the decision. There are several factors that determine your eligibility to collect Social Security and work at the same time.
How Old Are You?
The current retirement age for most American adults is 66 years old. However, you can begin collecting some Social Security benefits at age 62. The benefits you collect will be lower and adjusted based on what you are earning.
What Benefits Can You Collect?
If you are below the full retirement age for the entire year you will be collecting Social Security, you will have $1 deducted for every $2 that you earn above the annual limit. This year, the annual earnings limit was $16,920. In 2018, the amount will probably be slightly adjusted. Once you reach full retirement age (66), $1 will be deducted for every $3 that you earn period.
What Counts Towards the Earnings Limit?
The earnings you make are only the wages that you make from a job. Are you self-employed or a contractor? Your earnings will be the net earnings. Any commissions, vacation pay or bonuses that you earn are included in your earnings. However, interest, investment income, pensions and annuities are not included. If you have any military retirement benefits, those are also excluded.
What Happens to Contributions?
If you are working, you are also contributing to Social Security while you collect it. For as long as you are earning ages, you will be paying into Social Security. At some point, your benefits might increase as a result of your continued contributions.
Should You Report Changes?
If you think that your earnings amount will be higher or lower than the amount you initially told the Social Security office, you should let the SSA know right away.
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