A lot of workers look forward to the day they can call it quits, and walk away from a satisfying career with enough retirement benefits to enjoy their senior years. For many workers, retirement funds come from employer pensions and 401(k) plans and also from social security payments. And while being able to retire and not return to work may be the dream of many, there are those who still wish to dabble in certain work tasks after retirement. This can be a great way to maintain social contacts and earn a bit of extra cash, but if you earn too much while retired your social security benefits can be put at risk.
The Social Security Administration limits how much money you can earn and still receive social security payments. The amounts are difficult to explain, but are reported as:
- For 2019 the limit is $17,640.00, if you are under full retirement age for the entire year.
- Your social security benefits are reduced by $1.00 for every $2.00 you make that is over the limit.
- If you are at full retirement age the amount is $46,920.00 and $1.00 is deducted for every $3.00 over the limit.
The calculation is complex and deductions depend on your age and whether you are at full retirement age, and what time of the year you reached full retirement age. If it makes sense for you to continue working while taking social security, you can reap financial benefits later. Most notably, your overall benefit may increase depending on how much you make while retired. Working just a few more years, at a rate that adds to your ultimate benefit amount, can provide the extra income you need to fully enjoy retirement. To figure out if working while retired or stopping altogether is best for you, allow a knowledgeable attorney to put pencil to paper with your numbers and advise you of potential end results. We understand the rules and the calculations and want to make sure you do too. Call us today for the information you need to make a decision about your working future.
If you have questions about social security benefits and how your benefits might chance if you continue to work after you retire, call us for help. You can reach us online today for more information or by phone at 855-727-6353.