2 Things Could Happen to Your Social Security if You Keep Working After Retirement

Group 1 - Working while collecting Social Security can lead to a reduction or complete forfeiture of monthly benefits if done before reaching full retirement age (FRA), which is 67 for individuals born in 1960 or later [3][6] - If income exceeds $24,480 before reaching FRA, benefits will be reduced by $1 for every $2 earned above this threshold. For those who will reach FRA within the year, earnings above $65,160 will reduce benefits by $1 for every $3 earned above this amount [6] - Future benefits may increase if current earnings replace lower-earning years in the benefits calculation, potentially leading to larger monthly checks in the future [7][8] Group 2 - Understanding the work rules is crucial for retirees considering employment while collecting benefits, as it can impact their Social Security income [5] - If benefits are forfeited due to high earnings, they will be recalculated at full retirement age, resulting in a larger future benefit [4]