Will my Social Security payment increase if I work part-time?

Photo: pixabay.com

Q. I started collecting Social Security at my full retirement age. I continue to do part-time consulting where federal taxes. Will my monthly payment be adjusted on an annual basis?
— Still working

A. Lots of retirees work in some capacity and receive Social Security.

If you are younger than full retirement age and make more than the yearly earnings limit, your benefit will be reduced. 

If you reach full retirement age during 2020, the agency will deduct $1 from your benefits for each $3 you earn above $48,600 until the month you reach full retirement age.

“The amount that your benefits are reduced, however, isn’t truly lost,” Social Security said. “Your benefit will increase at your full retirement age to account for benefits withheld due to earlier earnings.”

Social Security will check your record every year to see whether the additional earnings you had will increase your monthly benefit, said Bill Connington of Connington Wealth Management in Paramus.

“If there is an increase, you will receive a letter telling you of your new benefit amount,” he said. “Then starting with the month you reach full retirement age, your benefit will not be reduced no matter how much you earn.”

Take a look at Social Security’s publication “How Work Affects Your Benefits” for additional information.

Email your questions to .

This story was originally published on April 2, 2020.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.