Retirees Might Want to Think Twice Before Going Back to Work
Times are tough. Many retirees living on a fixed income are struggling to keep up with inflation. This has many seniors contemplating going back to work. While extra income would certainly be welcome, Yahoo! Finance points out two circumstances where going back to work could end up costing you.
It could temporarily reduce your benefits. If you filed for Social Security before you reached full retirement age (FRA) and keep working, then the Social Security Administration will temporarily reduce your benefit payments. In 2022, the amount of the reduction is $1 for every $2 you earn above $19,560. Once you reach FRA, your monthly benefits will be adjusted to compensate for the original reductions.
If you earn too much, you could be taxed more. If you earn a high wage, your earnings could actually decrease because your benefits are taxable. Currently, if you file taxes as an individual and your income is between $25,000 and $34,000, up to 50 percent of your Social Security benefits may be taxable. That jumps to 85 percent if you earn more than $34,000.
The Seniors Trust believes we need to do more to help financially strapped retirees. We want Congress to enact the Social Security Expansion Act. This landmark piece of legislation will increase benefits by about $200 per month, establish a more fair COLA calculator that reflects the unique expenses facing seniors, and creates a strong and long-lasting Social Security Trust Fund.
