Here’s a question we get a lot: “Can I collect Social Security and continue to work?” And the answer is yes. But keep in mind, there may be some complications. Amy Cattelino, CFP® explains.
Here’s a question we get a lot: “Can I collect Social Security and continue to work?” And the answer is yes. But keep in mind, there’s going to be some complications, depending on when you take and how much you can still earn while you’re working.
If you earn $17,040 and you’re below your Social Security full retirement age, there’s no concern. However, if you’re below your full retirement age for Social Security benefits and you earn above $17,040 for 2018, there could be some payback. For every $2 you make above that $17,040, you will have to pay back a dollar.
Let’s walk through an example because, of course, this has been a little bit tricky with the way that the government set this up. Let’s say in 2018 you made $57,040. That’s going to be above the $17,040 for 2018 if you’re below your full retirement age for Social Security. So $57,040 minus $17,040 is a $40,000 amount that is above the earnings limit. Half of the $40,000 leads to $20,000.
So let’s say you make $24,000 from Social Security, or $2,000 a month. You essentially would take that $24,000 minus the $20,000, because that’s two for one above the $17,040 limit for 2018. That would essentially reduce your Social Security benefit to $4,000 a year.
Obviously, this isn’t something that they’ve made easier or light for us, so if you need more information, if you have deeper questions, feel free to contact us at Pure Financial.