Working in retirement could reduce Social Security by $239/month in 2025; long-term effects vary.

From Nasdaq: 2024-12-28 17:30:00

According to a report from the Employee Benefit Research Institute, 75% of workers expect to work for pay in retirement. Working while collecting Social Security can lead to benefit reductions, with the average working retiree seeing a cut of around $239 per month. Income limits for the retirement earnings test in 2025 are $23,400 per year for those under their full retirement age and $62,160 per year for those reaching their FRA. Benefit reductions can be recouped at FRA, but long-term effects depend on retirement duration.

Although short-term benefit reductions may occur, the advantages of working after taking Social Security often outweigh the disadvantages. It’s important to carefully consider your goals and preferences when deciding whether to continue working while on Social Security. One easy trick to maximize Social Security benefits could result in an additional $22,924 per year, providing a boost to retirement income.



Read more at Nasdaq: Going Back to Work in Retirement? It Could Slash Your Social Security by $239 per Month Starting in 2025.