January 21, 2022

Social Security and You: Full Retirement Age in 2022? Consider applying for benefits this month | Business news

Even if Ed were to earn more than the $51,960 income threshold between January and June, he would lose only one dollar in Social Security benefits for every three dollars he earns above that amount. So he could still come forward by filing in January.

Here’s a quick example using that scenario. Let’s say Ed will make $60,000 between January and June. That’s $8,040 above the $51,960 limit. And one-third of that deductible, or $2,680, is to be deducted from his 2022 benefits. But he would still get $26,120 in benefits for the year. That’s still much better than the $15,000 he’d have to pay if he waited until July to apply for his Social Security.

Keep in mind that this strategy generally only works for those who reach full retirement age in early to mid-2022 and whose earnings prior to reaching FRA are at least close to the $51,960 cap. In other words, if you’re going to make a lot more than $51,960 this year, or if you reach full retirement age later in the year, you’ll probably have to wait for your FRA to file for your Social Security benefits.

I know these rules are complicated and the math in the examples above is hard to follow. But my general message is easy to follow: If you reach age 66 and 4 months in early to mid-2022, you may want to talk to a Social Security representative sometime this month to find out if it would be to your advantage to have a Apply for your benefits starting in January.

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