I have heard that if you are receiving the social security retirement pension and are under 70, you are limited on how much other income you can make. Is that true? One of my favorite activities is making money, and I don't want anyone trying to stop me or slow it down. I'm 63 and haven't seriously looked into SS. At the present, I'm happy with my business and my income. If i could start getting the SS $ now, but still be able to earn, maybe I'd take it.
How Much Can You Earn While Receiving Social Security?
If you opt to work while receiving Social Security before your full retirement age, you will only be able to receive a certain level of income before your Social Security benefit is temporarily reduced. The Social Security earnings limit is $1,630 per month or $19,560 per year in 2022 for someone who has not reached full retirement age. If you earn more than this amount, you can expect to have $1 withheld from your Social Security benefit for every $2 earned above the limit.
For example, suppose you are 65 years old, receive $2,500 in Social Security benefits every month and have a job that pays $2,000 a month. You are over the income limit of $1,630 by $370 each month. During a year, you will receive $24,000 from the job, which is $4,440 more than the annual earnings threshold of $19,560. As a result, $1 out of every $2 above the threshold will be withheld. In this case, $185 will be withheld every month from your Social Security checks. You can expect to receive $2,315 each month from Social Security.
When you turn your full retirement age, your payments will be recalculated to give you credit for the withheld portion of your benefit.
