Impact of Post-Retirement Earnings on Social Security Benefits

I have a question for you. As you know, my Social Security payments are starting this month (about $3,500/month).  I am considering retiring from my job with the county and being re-hired, hopefully at the same rate I make now, about $85,000/year. If I am re-hired, would that affect the amount I receive in SS benefits?  Is there a cap on the amount I can earn without affecting my Social Security?

Since you are past your Full Retirement Age (FRA), there is no cap on the amount you can earn without affecting your Social Security benefits. The earnings test, which reduces benefits if you earn over a certain limit, no longer applies once you reach FRA. This means you will receive your full Social Security payment of about $3,500 per month regardless of your salary from your job with the county.

However, if your post-retirement earnings are higher than any of the 35 years of earnings used to calculate your Social Security benefit, your benefit may increase. This adjustment is recalculated each year, with the increase typically applied in January. Although, it's often October before Social Security Administration (SSA) processes these adjustments and sends any back pay owed to you.

So, you can continue working at your current salary of $85,000/year without worrying about any reductions in your Social Security payments, and you might even see an increase if your current earnings are higher than past earnings.

The content on this blog is for informational purposes only and is not legal, financial, or professional advice. Social Security rules change periodically, so some information may become outdated. For the most accurate advice, consult a certified National Social Security Advisor (NSSA®). Social Security Professionals, LLC, and NSSA® are not responsible for any errors, omissions, or actions taken based on this blog's content. Use of this blog does not create a client relationship, and all information is provided "as is" without guarantees. By using this blog, you agree to hold Social Security Professionals, LLC, and NSSA® harmless from any claims or liabilities arising from its content. For personalized guidance, contact an NSSA® professional.