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10 Mistakes That Reduce Your Social Security Payments

July 9, 2020 · Personal finance

7. Earning too much income as an early retiree

Should you continue working while claiming Social Security benefits early? Experts say it’s unwise to do so, and here’s why.

In 2020, if you earn over $18,240 while claiming benefits before your full retirement age then the government will reduce your monthly check by $1 for every $2 you make. Say you’re earning $48,600 in the months leading up to your full retirement age. In that case, you’ll see a $1 decline for every $3 over that threshold.

But there’s also good news. These reductions are not permanent and, furthermore, when you do reach your full retirement age your earnings will be added back.

Needless to say, if you’re still working you should hold off on claiming benefits. Instead of trying to supplement your wages try to look for budgeting plans that can help you make it to the end of the month safely instead.

With number 8, there are some things you just can’t avoid forever…..

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