The Amount You Can Earn While Claiming Social Security Benefits Depends on Your Age
Your earnings in (and after) the month you reach Full Retirement Age (FRA) as defined by the Social Security Administration (SSA) at www.ssa.gov/pubs/ageincrease.htm ) will not affect your Social Security benefits. However, your benefit is reduced if your earnings exceed certain limits for the months before you reach your full retirement age.
In 2013 if you are under FRA for the entire year:
- You can earn $ 15,120 gross wages or net self-employment a year and not lose any benefits in 2013.
- The SSA will deduct $1 in benefits for every $2 earned above 15,120.
If you reach full retirement age in 2013:
- You can earn $40,080 gross wages or net self-employment prior to the month you reach full retirement age and not lose any benefits in 2013.
- The SSA will deduct $1 in benefits for every $3 earned above $40,080.
The same earnings limits apply to a spouse or child who works and receives benefits on your record. You should report earnings to the SSA for any months and years prior to FRA. If you are uncertain about how this applies to your personal situation use the retirement Earnings Test Calculator located at www.ssa.gov/OACT/COLA/RTeffect.html .
About ksindell
Kathleen Sindell, Ph.D. is the author of numerous academic, popular, and professional finance articles, Web sites, proposals, and books. This includes the bestselling reference book, "Investing Online for Dummies, Eds 1-5" (listed for two consecutive years on the Wall Street Journal's Bestselling Business Book List). Her most recent book "Social Security: Maximize your Benefits" has been listed in Amazon's Top 100 Bestselling Retirement Planning Books. It is important to note that "Social Security: Maximize Your Benefits, 2nd Edition" was just released.
Sindell has an in-depth understanding of the financial services industry and has held Series 7, 63, and 65 licenses. Dr. Sindell is regularly tapped as a financial services expert on ABC World News, The Nightly Business Report, and at popular online and print outlets. Kathleen Sindell, Ph.D. is a member of the Board of Directors for the Financial Planning Association, National Capital Area (FPA NCA), is on the Editorial Advisory Panel of the Journal of Financial Planning, and is Co-Chair of the Metro Washington Financial Planning Day. Sindell is a Course Chair II, CFP Program Academic Officer, and adjunct full-professor at the University of Maryland, UMUC, School of Undergraduate Studies.
Contact Information: ksindell@kathleensindell.com or 703-299-1700
