Retirement benefits do not go as far as many think. This forces many senior citizens to find other means of compensation to bridge the gap. However, earning extra income can work against beneficiaries if they are not careful.

What are the Limits?

This brings us to the question, what are the additional income limits senior citizens must stay under if they wish to keep all their benefits untaxed?

According to the Social Security Administration, if the individual is under full retirement age, the limit for extra earnings before benefits are taxed is $18,960. After this, individuals will lose $1 in benefits for every $2 of additional income earned.

At full retirement age, the annual extra income limit raises. Rather than $18,960 annually, the threshold becomes $50,520. Once an individual earns more than the threshold, they will be subject to losing $1 for every $3 earned.

Is it Enough?

The average monthly retirement benefit collected in 2020 was $1,543, or $18,036 annually.

And, according to The Motley Fool, the average retiree spends about $16,723 annually on housing. That leaves just $1,313 for other annual expenses like healthcare and medical bills. This is simply not enough for senior citizens to live comfortably during retirement without earning additional income.

The addition of increased income threshold after retirement may seem like enough at a first glance. But with a more careful examination, we find that there are many more costs that must be considered. There are costs for mobile devices, medical bills, prescription costs, dental and vision costs, and more.

How We Can Help

Senior Security Alliance is dedicated to helping senior citizens receive a more financially secure future. That is why we understand that taxing senior citizens for working after retirement is not only wrong but detrimental to the financial security they earned.

This is where our bill comes in. The Senior Citizens Bill of Rights is the biggest step towards creating a more financially secure future for all senior citizens in decades. Right number 5 mandates that beneficiaries should not be penalized for working after retirement.

Please help us guarantee retirees a more financially secure future by urging the politicians in Washington to pass this crucial bill.