Early Claimers Beware – Social Security Limits How Much You Can Earn - Forbes
As a Social Security Advisor, I can’t even count the people who have contacted me in panic because they received an Overpayment Notice from Social Security demanding repayment of thousands of dollars in overpaid benefits. The cause? Because they claimed early Social Security benefits but were still working and, thus, impacted by Social Security’s “Annual Earnings Test.” The earnings test limits how much someone who is collecting benefits before their full retirement age (FRA) can earn and, if the limit is exceeded, Social Security will take away benefits equal to $1 for every $2 over the limit (half of what the limit is exceeded by). To the unsuspecting recipient of early SS benefits, that is a big surprise with often severe financial consequence. And, unfortunately, far too many innocently claim SS benefits without knowledge that doing so before FRA while working will impact them.
In this Forbes article by Thomas Hager, the author describes how the annual earnings test works and cautions those who claim Social Security before full retirement age to beware. Click here to read more.
If you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of this program. All questions are answered quickly, at no charge. Learn more about it here…