It’s a dilemma which perplexes many seniors who wish to claim their Social Security benefits as soon as they are eligible, but who are also still in the work force: Social Security limits how much you can earn while collecting early benefits. Indeed, for 2024 the SS earnings limit for early benefits is $22,320 and any work earnings in excess of that amount will result in a loss of $1 in benefits for every $2 over the limit. The earnings limit lasts until you reach your Social Security Full Retirement Age (FRA), which is somewhere between age 66 and 67 depending on when you were born, but it catches many an unsuspecting worker who claims early Social Security by surprise. In fact, even though your may be technically eligible for SS benefits (e.g., at least age 62), you may find when you apply, that Social Security says you are temporarily ineligible to collect early benefits because you currently earn too much. And, if you don’t inform Social Security that you are working when you apply, they will find out later from the IRS and you’ll be faced with an “Overpayment Notice” the following year which demands you repay Social Security some of your benefits.

The “earning limit” was included in the original Social Security Act of 1935, so the concept has been around for a long time. But in this age of high inflation, which causes many to claim early Social Security to make ends meet, some are questioning why Social Security’s “earnings test” exists in the first place. And this is exactly the question posed by one senior citizen, and answered in our popular Ask Rusty series. To read the this Encore edition (June 2024) Ask Rusty article on this topic, click on this link. Or to listen to the audio version of the original article, click here.

To get answers to all your Social Security questions, the AMAC Foundation offers a free Social Security Advisory Service staffed by experts with many years of Social Security experience. Questions can be emailed to SSadvisor@amacfoundation.org, or you can all us at 1.888.750.2622 during normal EDT business hours to speak directly to an advisor. There is never a fee for the services offered by the AMAC Foundation.