January 23, 2022

Will my Social Security benefits be reduced if I work?

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Q. At what age do Social Security income restrictions end? I was born in December 1956 and turned 65 in December 2021. I have been receiving SSDI since 2017. I believe my normal full retirement age is 66 years 4 months, but I understand that I am already receiving my full retirement age due to SSDI. What income affects my benefit at age 65?

– Still works

A. It is good that you consider how your benefits will be affected as you get older.

Your full retirement age (FRA) is in fact the age of 66 and 4 months.

Once you reach this age, you can earn as much as you want and you full social security benefit, said Jody D’Agostini, a certified financial planner at Equitable Advisors/The Falcon Financial Group in Morristown.

Before then your advantage would be: diminished, she said.

“You would be deducted $1 for every $2 earned over the annual limit, which is $18,960 for 2021,” she said. “In the year you reach your FRA, your benefit is reduced by $1 for every $3 you earn above another limit. That limit for 2021 is $50,520.”

The numbers are up for 2022. This year you can earn up to $19,560 without affecting your benefits. Above that, you would get $1 deducted for every $2 earned over the limit. And in 2022, if it’s the year you reach your FRA, your benefit is reduced $1 for every $3 if you earn more than $51,960 in income.

Mail your questions to [email protected].

Karin Price Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com‘s weekly e-newsletter.


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