January 21, 2022

Who is ready for 5 big changes in Social Security in 2022? | Smart Change: Personal Finance

For example, early applicants who did not reach full retirement age in 2021 were allowed to earn only $18,960 ($1,580/month) before withholding $1 in benefits for every $2 in income earned above this threshold. In 2022, this threshold will increase by $600 to $19,560 ($1,630/month). In other words, early filers earn a little more before withholding.

The same applies to retired employees who will reach full retirement age in the current year, but have yet to do so. This year, retirees who met this definition were allowed to earn up to $50,520 ($4,210/month) before $1 in benefits was withheld for every $3 in income earned above the threshold. The threshold will rise from $1,440 to $51,960 ($4,330/month) for retirees who will reach full retirement age by 2022.

Keep in mind that once you reach full retirement age, the pension test no longer applies. Basically, the Social Security Administration cannot withhold benefits no matter how much you earn.

The $16,728 Social Security Bonus Most Retirees Completely Overlook

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