It’s not unheard of for retirees to choose to go back into the workforce; in fact, one of the most common reasons people decide to start working again is inflation. Even though Social Security benefits get a cost-of-living adjustment each year to help account for the increasing prices, it’s never enough.
However, individuals who choose to “unretire” are in for a headache — Social Security benefits are deducted when an individual earns more than the set limit.
The Problem
For individuals under the full retirement age (FRA), an earnings test is conducted. Anyone under the FRA who earns more than the set limit will have their benefits reduced.
For 2022, the income threshold is set at $19,560. That means individuals under the FRA receiving benefit payments must make sure to earn only up to this amount. If the individual earns more than the set threshold, their benefit payments will be withheld.
Luckily, there are two steps that can be taken to avoid this problem during retirement. Retirees can choose to stop working entirely, or they can choose to tell the Social Security Administration they want a suspension of benefit payments.
However, Seattle Times reports that timing is important, especially for those wanting Option 2. Additionally, individuals should note that suspending benefits can only be done once, so make sure to think things through before notifying Social Security.
Seniors Deserve Better
Benefits should never be withheld, taxed, or cut; it undermines any possibility of financial security for senior citizens. This is even more true when considering how senior citizens rely on a fixed monthly income, regardless of any inflating costs.
Senior Security Alliance is acting to fight against this injustice. Our bill, The Senior Citizens Bill of Rights, is a necessary step toward creating a more financially secure future for retirees.
In this bill, senior citizens who are seeking additional income to make up for the current inflation are protected from penalties currently in place.
Find out how you can help change current policies and help create a more financially secure future for seniors nationwide. Then, make sure to stay informed about our progress by following us on Facebook and Twitter.
