More often than not retirees have questions about social security, particularly the social security income limits and investments in it. Here's what you need to know.
People often have questions about social security,
particularly the social security income limits and investments in it. If you are at or beyond retirement age, there are usually no social security income limits on the amount that you can earn on your income while you are receiving your social security benefits. However, if you are not the retirement age, there is a different situation. You will still be able to receive social security, but only in consideration of earning limits. If you make earnings over the social security income limits that are given to you, then a reduction in your benefits is usually automatically triggered.
If you're wondering what the retirement age is, it's fairly simple. If your birth date is during the years of 1943 and 1955, then your retirement age for any social security benefits or social security income limits should be around the age of 66. However, if you were born any time after the year 1960, then your retirement age is going to be around the age of 67. Remember that if you're below the retirement age, earning limits will apply to you.
In example, you will experience a reduction in your benefits if you earn more than $14,160 this year. In fact, for each two dollars that you may earn over that specific limit, your social security benefits will be reduced by a dollar. If you reach retirement age during this year, social security can also make a reduction of a dollar for each of the three dollars you earn above $37,680. These reductions can add up immensely depending on how much you are capable of currently earning.
However, even if you are subject to some benefit reductions, there is hope for your case. These reductions are not at all permanent to your social security and they will stop when you reach the retirement age. Your benefits can actually be increased upon reaching the full retirement age to make up for the benefits that were taken from you during the reductions in previous years.
However, any spouses or survivors that may be receiving benefits due to having minors or disabled children in personal care will not be able to receive these increased benefits when they reach the full retirement age. If you are self-employed or work at home, then only your net income earnings will apply towards your social security benefit limits. If you are employed by a company and working for another person, then only your specific wages will be counted towards the social security earning limits.
Your interests, pensions, capital gains and other financial gains are included in the count in regards to your social security income limits.
If you are receiving any sort of social security benefits for any disabilities or supplemental security income payments, you have to report these to social security because they are considered to be earnings. In addition, if you work outside of the U. S or you have been previously, your earnings and social security income limits can have different rules than what are listed here, so it is important to contact your social security office to find out what the exact rules are for your own situation.
If you're interested in seeing exactly how much earnings and benefits you can receive and what the reductions can be like, the social security administration often has a chart that can reflect examples. You can see this via the internet or they can send you a copy in the mail.
