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Social Security Offers New Way To 'Earn' More Income

Social Security offers way to earn more income.

Staff Reporter  /  February 9, 2012  /  Views: 28  /   No Comments

There was an increase in Social Security and Supplemental Security Income (SSI) monthly payments at the beginning of the year. Those receiving monthly Social Security or SSI payments received a 3.6 percent cost-of-living adjustment beginning with the payment for January.

For people who receive Social Security retirement benefits, there's more good news. In addition to receiving a little more each month, seniors may now "earn" more income without offsetting their benefits because the "earnings test" numbers also have gone up.

Seniors who have reached full retirement age (age 66 for anyone born before 1943 and 1954), the earnings test does not apply, and they may earn as much income as they can without any effect on benefits. However, for those younger than full retirement age collecting benefits and still working, Social Security does offset some of the benefit amount after a certain earnings limit is met.

For people under full retirement age in 2012, the annual exempt amount is $14,640. For those who reach that limit, Social Security withholds $1 for every $2 above that limit from their monthly benefit amount. For people who retired early, continue working and will obtain full retirement age in 2012, the annual exempt amount is $38,880. After that amount, $1 will be withheld for every $3 earned over the limit from monthly benefits.

Learn more about the earnings test and how visiting www.socialsecurity.gov and searching on the topic "earnings test" may reduce benefits.

Find out what your retirement age is at the Retirement Age page, www.socialsecurity.gov/pubs/ageincrease.htm.

Anyone interested also may wish to read "How Work Affects Your Benefits." It's available at www.socialsecurity.gov/pubs/10069.html.

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