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How Much Money Can I Make and Still Receive SSI? | irudivupic.web.fc2.com

Seniors rely on Social Security At the moment there are more than 60 million people receiving a monthly Social Security benefit, of which just over 40 million are retired workers. An AARP study released in September asked nearly 1, pre-retirees between 45 and 64 how much they planned to rely on Social Security in retirement.

They did this by quantifying what percentage of household income Social Security benefits were expected to make up. Why are so many pre-retirees and retirees reliant on Social Security? The answer can likely be found in America's poor personal savings rate which trails most developed countries.

Far too many seniors are entering retirement today with an insufficient nest egg, and are thus forced to be reliant on Social Security income during their golden years.

This is a big reason we've witnessed more seniors than ever delaying their retirement, with some even coming out of retirement in order to earn additional income as a member of the labor force during their golden years. How much can I earn and still collect? But, what happens to seniors who are simultaneously working and receiving a Social Security benefit?

Today we're going to solve that mystery. The short, sweet answer is that yes, you can work and receive your entitled Social Security benefits, but there are some catches that apply mainly to when you decide to file for benefits. The biggest differentiating factor is going to be whether you file for benefits before or after your full retirement age, or FRA. The chart below provides a solid visualization of how an individuals' benefit rises on a monthly basis the longer they wait to sign up.

The Social Security retirement benefit schedule for people born between and Utilizing an FRA of 66 years gives us three scenarios to determine whether you can work and also receive Social Security benefits.

Filed for benefits before FRA: This is the amount the SSA says is OK to earn without it adversely impacting your benefits.

If you'll reach FRA in There's a special scenario in place for seniors who are working that are expected to reach their FRA i.

Filed for benefits at or after your FRA: Finally, if you've already reached your FRA or beyond, the SSA allows you to earn as much as you want during the year in wages and still collect all of the Social Security benefit you may be due.

Another thing that could probably use some clarification is what counts as income. According to the SSA, wages paid to you from an employer, and net earnings from self-employment count toward your annual earnings limit. What doesn't count are other government benefits, interest, pensions, annuities, capital gains, and investment earnings. So by all means, keep investing. Flickr user Scott Lewis.

Three special perks of working while collecting Social Security benefits Additionally, working while collecting benefits could have its perks, according to the SSA.

First, benefits deducted prior to hitting your FRA because you've earned too much in the eyes of the SSA will actually boost your benefits once you surpass your FRA. Thus, if you file for benefits before age 66 and a substantial portion or all or of your benefits are withheld, you could be looking at a nice boost in monthly benefits once you hit your FRA as those benefits are returned to you.

Secondly, the SSA averages out your income over your 35 highest-earning years in order to determine your benefit.

If you happen to earn more in , or a future year, than you did in a year say 10, 20, or 30 years ago, your new year of earnings could replace a lower previous year of income and boost your benefit payment.

Social Security: How Much Can I Earn and Still Collect? -- The Motley Fool

An example offered by the SSA is a retiree that chooses to retire at the end of October The Motley Fool has no position in any of the stocks mentioned. A Fool since , and a graduate from UC San Diego with a B. You'll often find him writing about Obamacare, marijuana, drug and device development, Social Security, taxes, retirement issues and general macroeconomic topics of interest. Skip to main content The Motley Fool Fool.

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