Social Security: Readers rate questions
However, if someone is younger than full retirement age and still working while receiving Social Security benefits, it could push them over the annual income limit and their monthly benefits will be temporarily reduced. This is not permanent.
Here’s how the Social Security Administration runs the numbers: If you receive Social Security benefits and are under full retirement age for the entire year, $1 is deducted in your payments for every $2 you earn above the annual income limit. For 2024, that limit is $22,320.
In the year you reach full retirement age, $1 in benefits is deducted from your monthly benefit for every $3 you earn, but only earnings before the month you reach retirement age leave a job that counts. If you reach full retirement age in 2024, your earnings limit for the months before your birthday is $59,520.
What counts as income is the income you make from your job or your net income if you are self-employed. The figure also includes bonuses, commissions and vacation pay. What doesn’t count: pensions, annuities, investment income, interest, veterans’ benefits, or other government or military benefits.
But you will get any discounts. Once you reach FRA, your monthly benefits will be increased indefinitely for the months in which benefits were withheld.
One extra thing to keep in mind: Medicare Part B premiums, which cover doctor visits and outpatient services, and Part D, which covers prescription drugs, may increase if you get a lot of money. If you earn more than $103,000 as an individual or more than $206,000 if you are a joint seller, you will pay more. Those payments are usually deducted from your monthly Social Security check.
Dear Kerry, I am 62 years old, working and receiving spousal benefits. If I retire and file for Social Security benefits, do I have to choose one or can I get both? – Silvia V.
Thanks for this great question, Silvia.
You can only choose one benefit; the larger of the two will usually be in your favor.
As a surviving spouse, you can receive 100% of the deceased spouse’s benefit if you waited until your FRA, 67, when you claim the survivor benefit. Benefit amounts, however, are reduced for years below the FRA. The closer you are to your FRA, the greater the benefits.
However, your advantage is that it is possible to claim widow’s benefits, as you did, while allowing your retirement benefits to grow. For example, you can claim a widow’s benefit at age 60, then transfer it to your retirement benefit at age 70, if it’s a larger amount.
Meanwhile, even if this doesn’t apply to you, it’s important to mention for other surviving spouses that if you and your deceased spouse were claiming Social Security benefits at the time of their death, then The biggest benefits of the two become your survivors. benefit.
Also, for a surviving spouse, if you applied for Social Security benefits less than 12 months before your spouse’s death, you have the option to withdraw this application and apply of survivor benefits if it is a large amount.
Important note: A surviving spouse, surviving spouse, unmarried child, or dependent parent may receive monthly survivor benefits based on the employee’s earnings. There are many variables to consider, so I recommend reaching out to Social Security directly.
Have a question about retirement? Personal finance? Is there something related to work? Leave Kerry Hannon a message.
Is it possible to keep the Social Security balance for my children? – Edwin S
No. Once you start Social Security retirement benefits, you are guaranteed monthly checks for the rest of your life. But, Edwin, that comes to a standstill when you die.
There are exceptions for family members who may qualify for survivor benefits based on the deceased beneficiary’s earnings record beginning once in the month of death.
For example, if a parent receives Social Security retirement or disability benefits and dies, their child may also receive benefits. Under certain circumstances, an adopted child, foster child, or dependent grandchild or step-grandchild may also be eligible.
In order to receive benefits, the child must be unmarried and under 18 years of age, or be between 18 and 19 years of age and a full-time student in elementary or middle school (grade 12 or younger), or 18 years or older with an onset disability. before the age of 22.
Thanks to my Yahoo Finance readers who felt comfortable posting your questions. My advice to all of you trying to understand Social Security benefits: Create a Social Security account. This is a website that allows you to check the status of your benefits application, estimate future benefits, or manage your current benefits. You can create an account even if you are not currently receiving benefits. Do it.
Kerry Hannon is a Senior Papers writer at Yahoo Finance. He is a career and retirement expert and the author of 14 books, including “Managing at 50+: How to Succeed in the New World of Work” and “Never Too Old to Be Rich.” Follow him to X @kerryhannon.
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