It’s no secret that Social Security benefits are far too low. With an average benefit of only $1543 each month, many retirees are struggling to make ends meet. Some older Americans seek out part-time jobs to help supplement their benefits, but that might not always be a good idea.
If you have already reached full retirement age, then there is no worry – you can earn as much as you want without it affecting your Social Security benefits. However, if you are not at full retirement age, but are collecting Social Security, your monthly benefits might be cut. A Yahoo! News report explains that it all depends on the Social Security earnings limit. Basically, if you are 65 or younger and earn more than $1,580 per month, or $18,960 per year, you could have your Social Security benefits temporarily reduced. Once you reach full retirement age, your payments will be recalculated, and you will be credited for the withheld portion of your benefit.
So, before you go to work at your favorite boutique or pick up a shift at the grocery store, think about how that part-time paycheck could affect your retirement income. You won’t lose your benefits, but you might not receive the full amount for a few more years.
The bottom line is that retirees would not even be considering getting part-time jobs if Social Security benefits kept up with the current cost of living. The Seniors Trust is fighting for seniors’ rights. It wants Congress to pass the Social Security Expansion Act, which would increase monthly benefits, establish a better cost-of-living adjustment more attuned to the unique spending needs of seniors, and ensure the long-term solvency of the Social Security program. You can show your support by signing its petition.