Claiming Early? Beware the Retirement Earnings Test
Age 62 is the most common Social Security claiming age, even though it brings with it a permanently reduced benefit for life. Still, many claimants choose to also continue working. But wages are subject to the retirement earnings test, a little liked and little understood rule. Earning above $22,320 in 2024 while claiming Social Security early reduces your monthly benefit. There’s a formula, which Stefon Walters explains in this piece. But alas, while your money is withheld if you cross the limit, it is not permanently lost. Lastly, the threshold doesn’t apply after you reach your full retirement age. Full article here.