Weigh benefit amounts below full retirement age

Retirement doesn’t have the same meaning for everyone. Some people plan to retire and never work again. Some people plan for second careers in occupations that wouldn’t have adequately supported their families, but they do the work for pure enjoyment.

Retirees (or survivors) who choose to receive Social Security benefits before they reach full retirement age and continue to work have an earnings limit. In 2017, the annual earnings limit was $16,920 for those younger than their full retirement age the entire calendar year. In 2018, it is $17,040. If you earn over the limit, we deduct $1 from your Social Security monthly benefit payment for every $2 you earn above the annual limit.

In the calendar year you reach full retirement age, which you can check out at socialsecurity.gov/planners/ retire/ageincrease.html, you have a higher earnings limit. Additionally, we will only count earnings for the months prior to that. In 2017, the limit was $44,880. In 2018, it is $45,360. In the year you reach full retirement age, Social Security deducts $1 in benefits for every $3 you earn above the limit.

There is a special rule that usually only applies in your first year of receiving retirement benefits. If you earn more than the annual earnings limit, you may still receive a full Social Security payment for each month you earn less than a monthly limit. In 2018, the monthly limit is $1,420 for those below full retirement age the en tire calendar year. The 2018 monthly limit increases to $3,780 in the year you reach full retirement age.