Will my Social Security benefits be reduced if I work?

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Q. At what age are Social Security income restrictions removed? I was born in December 1956 and turned 65 in December 2021. I have been receiving SSDI since 2017. I believe my normal full retirement age is 66 years and 4 months, but I understand that I am already receiving my full retirement age payments because of SSDI. At 65, what amount of earnings will affect my benefit amount?
— Still working

A. It is good of you to consider how your benefits are affected as you age.

Your full retirement age (FRA) is, in fact, age 66 and 4 months.

Once you reach this age, you can earn as much as you like and collect your full Social Security benefit, said Jody D’Agostini, a certified financial planner with Equitable Advisors/The Falcon Financial Group in Morristown.

Before that time, your benefit would be reduced, she said.

“You would have $1 deducted for every $2 earned above the annual limit which for 2021 is $18,960,” she said. “In the year that you reach your FRA, your benefit is reduced $1 for every $3 you earn above a different limit. That limit for 2021 is $50,520.”

The numbers went up for 2022. This year, you can earn up to $19,560 without it affecting your benefits. Above that, you would have $1 deducted for every $2 earned above the limit. And in 2022, if it’s the year you reach your FRA, your benefit is reduced $1 for every $3 if you earn more than $51,960 in income.

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This story was originally published on Jan. 6, 2022.

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