Q & A
What is the special rule about earnings in the first year of retirement?
Answer: Sometimes people younger than full retirement age retire in the middle of the year and have already earned more than the yearly earnings limit. There is a special rule that applies to earnings for one year, usually the first year of retirement. Under this rule, you can get a full Social Security benefit for any whole month you are retired, regardless of your yearly earnings. See Retirement Planner Special Earnings Test Rule for more information. When you’re ready to apply for retirement benefits, use our online retirement application, the quickest, easiest, and most convenient way to apply.
Source: Social Security Administration
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I recently heard of a 10% cut in 2017. Does the calculator take this into consideration or will there be an adjustment to the calculator when this goes into effect? I have co-workers who are retiring in a few years who might adjust their retirement date because of the cut.
Hello,
Please keep in mind that there are a lot of bills being proposed at the moment that may or may not go through. As of now, the Social Security trust fund for retirees is set to become insolvent around 2034, at which time only partial payments can be made. In 2016, the Social Security Disability trust fund is set to become insolvent, at which time only partial payments can be made. The multiple bill proposals in D.C. right now are meant to solve these issues. If people are wanting to retire early because of this, it should be remembered that the retiree Social Security benefit is not set to be in trouble for 20 more years, and a lot can happen with this issue until then.
As for the calculator, you probably noticed there are many calculators you can use based on how much information you have and what you want to find out. Since the calculators are provided by the Social Security Administration, they should be up to date. Based on my personal experience, this website will typically stay current and also post notices of updates under “news” on the home page. If you go to this now (www.ssa.gov), the most recent news item discusses the trust fund depletion information if you want further details.
Thank you for your support,
C.J. Miles, MSA, MBAHCM
Research Analyst & Certified Social Security Advisor
AMAC Foundation