Am I Able To Get Social Security Retirement Benefits If I'm Working?

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Yes, you can get Social Security retirement benefits and continue to work. Beginning in the month you reach full retirement age, you can get full benefits without limits on your earnings. If you apply for benefits at age 62 or before full retirement age, any wages you earn will reduce the amount you receive in benefits. However, these benefits are not lost. Whatever is withheld now will end up increasing your benefits once you reach full retirement age.

There is a formula for how much your benefit is reduced if you start taking benefits before full retirement age. Social Security will deduct $1 in benefit payments for every $2 you earn above the annual limit. The annual limit in 2017 is $16,920.

In the year that you reach full retirement age but before the month of your birthday, Social Security will deduct $1 in benefit payments for every $3 you earn above a different limit, $44,880 in 2017.

If you work for someone else, Social Security will count your wages against annual limits. If you are self-employed, your net earnings will be counted when you receive them not when you earn them. Income from things like government benefits, investments, pensions, and annuities are not counted (but your contribution to a retirement plan will be counted in your gross earnings).

There is a special earnings rule that applies if your earnings are over the limit during the first year of retirement. Under this rule, you can get a full Social Security check for any whole month that you are considered retired regardless of your annual earnings. If you will not turn 66 in 2017, you are considered retired in any month that your earnings are less than $1410 and you were not self-employed. Or if you do turn 66 in 2017, you are considered retired in any month that your earnings are $3740 or less and you were not self-employed.

The rule actually refers to self-employment as "substantial services in self-employment." Social Security defines retirement in very specific terms. You are retired if you work less than 15 hours per month. You are definitely not retired if you work more than 45 hours per month. If you work somewhere in between 15 and 45 hours a month, your retirement status depends on the type of work you do. Highly skilled professionals working more than 15 hours a month are generally considered not retired by Social Security.

How does reaching full retirement age affect your Social Security benefits?

When you reach full retirement age your earnings will no longer reduce your benefits no matter how much you earn beginning with the month you reach full retirement age. The Social Security Administration will also recalculate your benefit amount to exclude months where your benefits were reduced or withheld due to excessive earnings.

There are different rules if you receive Social Security survivor benefits or Social Security disability income, or if live outside of the United States. You can contact Social Security at 1-800-772-1213 if you have any questions about these situations, or about how to figure out your self-employment status or your earnings.

When should you begin receiving Social Security income?

Choosing what age to start your Social Security benefits is an important decision. But there is no one-size-fits-all answer to this question that will have a lasting impact on your cash flow during retirement. Ultimately, you have to make the best decision for your unique situation. There are other factors to consider in addition to understanding how work will affect your Social Security decision. You also need to think about your health history, family longevity history, how you will obtain health insurance, and if you have enough income to allow you to delay starting your benefits.


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