Be Careful Not to Forfeit Some Social Security if You Work
Christy Bieber reports 57% of current workers intend to work either full time or part time after they’ve officially retired. That’s according to a recent study from the TransAmerica Center for Retirement Studies. As a result, they’re potentially at risk of losing some of their Social Security checks. She explains how the reduction occurs for those between 62 and full retirement age (FRA), which is now 67.
The Social Security Administration (SSA) will withhold entire checks based on the amount you forfeit. If your earnings will cause you to lose $3,000 in benefits in 2022 and your monthly checks are for $1,500, you’ll miss two entire checks.
But, once you finally reach FRA, the SSA figures out how many months you missed payments. You’re credited back the early filing penalties that would’ve otherwise applied for those months. So your benefit check goes up a bit. Full discussion here.