The earnings limit for working retirees will edge up
Ever heard of the earnings limit? This applies to all seniors who are still working that have claimed Social Security benefits before reaching their FRA, full retirement age. If your income is above the earnings limits, the Social Security Administration will withhold some of your benefits. On the other hand, you’ll get all your money if you continue working after you reach your FRA.
This limit increases with the national average wage index on an annual basis. But don’t worry, that extra cash isn’t actually lost! Once you reach your full retirement age, your benefits will be increased to make up for the months you’ve received less money.
If you reach full retirement age after 2021, the earnings limit will go from $18,240 to $18,960 for you. But if you reach it in 2021, the limit will shift from $48,600 to $50,520.
Due to this, you might have to whip out your budgeting spreadsheet in order to avoid any nasty surprises down the line.
1 thought on “5 Important Changes to Social Security Benefits in 2021”
What about the money that the government borrow from Social Security, that never got paid back?