People often have questions about social security, particularly the
social security income limits and investments in it. If you are at or
beyond retirement age, there are usually no social security income
limits on the amount that you can earn on your income while you are
receiving your social security benefits. However, if you are not the
retirement age, there is a different situation. You will still be able
to receive social security, but only in consideration of earning
limits. If you make earnings over the social security income limits
that are given to you, then a reduction in your benefits is usually
If you’re wondering what the retirement age is, it’s fairly simple. If
your birth date is during the years of 1943 and 1955, then your
retirement age for any social security benefits or social security
income limits should be around the age of 66. However, if you were born
any time after the year 1960, then your retirement age is going to be
around the age of 67. Remember that if you’re below the retirement age,
earning limits will apply to you.
In example, you will experience a reduction in your benefits if you
earn more than $14,160 this year. In fact, for each two dollars that
you may earn over that specific limit, your social security benefits
will be reduced by a dollar. If you reach retirement age during this
year, social security can also make a reduction of a dollar for each of
the three dollars you earn above $37,680. These reductions can add up
immensely depending on how much you are capable of currently earning.
However, even if you are subject to some benefit reductions, there is
hope for your case. These reductions are not at all permanent to your
social security and they will stop when you reach the retirement age.
Your benefits can actually be increased upon reaching the full
retirement age to make up for the benefits that were taken from you
during the reductions in previous years.
However, any spouses or survivors that may be receiving benefits due to
having minors or disabled children in personal care will not be able to
receive these increased benefits when they reach the full retirement
age. If you are self-employed or work at home, then only your net
income earnings will apply towards your social security benefit limits.
If you are employed by a company and working for another person, then
only your specific wages will be counted towards the social security
Your interests, pensions, capital gains and other financial gains are
included in the count in regards to your social security income limits.
If you are receiving any sort of social security benefits for any
disabilities or supplemental security income payments, you have to
report these to social security because they are considered to be
earnings. In addition, if you work outside of the U. S or you have been
previously, your earnings and social security income limits can have
different rules than what are listed here, so it is important to
contact your social security office to find out what the exact rules
are for your own situation.
If you’re interested in seeing exactly how much earnings and benefits
you can receive and what the reductions can be like, the social
security administration often has a chart that can reflect examples.
You can see this via the internet or they can send you a copy in the
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ABOUT THE AUTHOR
When it comes to Social Security income there are certain factors that apply. These are often dependent on the Social Security income limits that apply to contributions.