How a Part-Time Job Could Hurt Seniors Financially
Inflation is hitting everyone hard, especially retirees living on a fixed income. Many people are picking up part-time jobs and side hustles to help make ends meet. If you’re collecting Social Security you might want to think twice before going back to work. GOBankingRates says that’s because there is a limit to how much older workers can make and still receive their full Social Security benefits.
If you have reached full retirement age (FRA) — 66 or 67, depending upon the year you were born — then you do not have to worry about work earnings affecting your Social Security benefits. However, if you have not reached FRA, then you could have your benefits cut if you make more than $19,560. The Social Security Administration (SSA) will deduct $1 for every $2 you earn above the that limit. During the year when you reach FRA, the deduction will be $1 for every $3 you earn above the limit which currently stands at $51,960. So, it’s important to weigh carefully whether earnings from a part-time job could end up costing you money.
It’s important to point out that your benefits are not lost. You will receive your previously withheld benefits after you reach your full retirement age.
Retirees would not need to think about getting part-time jobs if Congress would enact the Social Security Expansion Act. It would provide retirees with a $200 monthly benefits boost, along with establishing a fairer cost-of-living adjustment and shoring up the long-term solvency of Social Security. The Seniors Trust is a strong supporter of this bill. We ask you to show your support by signing our petition to Congress.
