Social Security benefits are a large part of many senior’s incomes. However, they are often not enough. Because of this, many senior citizens find themselves needing to earn additional income after retirement. But what many are not aware of is how costly this can be.
Income Threshold
Unknown to many, there is an income threshold for those working after retirement. Once this threshold is met, some benefits are withheld. This threshold changes each year and is different for seniors depending on their age.
For those under the full retirement age (FRA), the income threshold is a $18,960 limit; for those turning the FRA during 2021, the income threshold increases to $50,520.
Full Retirement Age
The full retirement age differs depending on the year an individual was born. If an individual was born after 1960, the full retirement age (FRA) is currently 67. For those born before, the age varies.
How This Affects Seniors
Many senior citizens rely on their Social Security benefits. However, it should come as no surprise that these benefits are often not enough for individuals’ monthly payments. This reality means that many earn additional income during retirement to help make up the difference.
However, earning only as much as the $18,960 limit may not be enough for some individuals. Rather, individuals needing more money must either disregard their benefits entirely, or calculate the additional earnings needed to cover the difference, and for every $2 over the $18,960 limit, individuals’ benefits are deducted by $1.
What We’re Doing To Help
Now, if you finished reading all that and are thinking this is just not right, you’re not alone. We at Senior Security Alliance completely agree. Senior citizens have worked hard for their benefits and working after retirement should not affect them.
That is one reason why we are working to get our innovative bill, The Senior Citizens Bill of Rights, passed. This bill provides seven rights to senior citizens. These seven rights will empower seniors to achieve more financially secure futures.
Help us achieve our goal by signing our petition, contacting Congress, and taking action. Senior citizens deserve more.
