Going Back to Work After Claiming Social Security? Here's When You Need to Worry About Withheld Benefits.

Core Insights - Many individuals return to work after claiming Social Security, either out of boredom or necessity due to insufficient income from benefits [1][2] Group 1: Social Security Benefits and Working - The average Social Security benefit for retirees is approximately $2,075 per month, which may not fully cover living expenses [2] - Recipients are allowed to work while collecting Social Security, but their benefits may be withheld based on age and income levels [3] Group 2: Earnings Test Rules - If Social Security is claimed before reaching full retirement age (67 for those born in 1960 or later), an earnings test applies, allowing earnings up to $24,480 without benefit withholding [4] - For those reaching full retirement age in 2026, the earnings limit increases to $65,160, with benefits withheld at a rate of $1 for every $3 earned above this threshold [5] Group 3: Impact of Exceeding Earnings Limit - Exceeding the earnings test does not result in permanent loss of benefits; withheld amounts are repaid later [6] - The Social Security Administration recalculates monthly benefits upon reaching full retirement age, increasing checks to compensate for previously withheld amounts [7] Group 4: Financial and Mental Health Considerations - Working while on Social Security can positively impact finances and mental health, but understanding the earnings limits is crucial to avoid financial difficulties [8]