The Withheld Money Isn’t Actually Lost
This is the detail that gives most retirees peace of mind once they understand it: any benefit withheld because of the earnings test is not a penalty. When you reach full retirement age, the SSA recalculates your benefit and gives you credit for every month that was reduced or withheld. In practice, this means your monthly payment increases permanently going forward, as if you had claimed benefits later than you actually did.
If Social Security withheld eight months of your payments between age 62 and 65 because of excess earnings, your benefit at full retirement age is recalculated as though you’d claimed eight months later, later claiming means a higher monthly amount for the rest of your life.
What Counts as “Earnings” for This Test
Only income from actual work counts against the limit. This includes wages from a job and net income from self-employment. It does not include:
- Pension payments
- Retirement account withdrawals (401(k), IRA distributions)
- Investment income, dividends, or interest
- Annuity payments
- Your spouse’s earnings, even if you file taxes jointly
That last point matters a lot for married couples. If you’re the one collecting benefits early, only your individual work income counts, your spouse can earn as much as they want without affecting your check.
Social security dude, just as much as criminals as the government is. You pay into this system. So when you get to age, now, they change the age. Social security you suck you suck at what you do and then you try to tell the person who’s worked all their lives but they’re only allowed
A certain amount of money while they work. So what happens now? What happens when a person becomes 67 or boy? Just didn’t quite make it to 70 Cos. That’s what you’re really counting on. You counting on them not to make 70. So you can keep the money that they put into the social security to me. Social security is a big hoax. You grow up all your life thinking. Social security, it’s gonna be there at the end, but they’re not there to be there. At the end, they let the politicians take all the money that was there. And don’t even put the money back and then I got the nerve to tell the citizen we, the people that we don’t have a right. So if that, if I’d see this correctly, how is it that you have all the rights because the law says? So the laws were made up by men. And laws can be changed, just like they change the law of the age of retirement. They can change every other law. Social security doesn’t look out for people’s well beams, they only look out for their own pockets
Thank you for the info I am 74 now its been a ruff couple of years. i work part time some times. to help with bills, But its ruff.
I am a double knee amputee. Thank you for soo for much for being
I have also lost my mother, and father and they having my food stamps away. Thank You.
I turn 67 in June of next year that’s when I plan to retire
i hit 657 in march of 2027, which ill start collectings. so this should not bother me correct.