These days, having multiple streams of income is not uncommon, even among retirees. In fact, with the current impact of inflation, it’s becoming more and more common for individuals to go back to work after retirement.

According to CNBC, the average senior citizen collects around $1,666.49 each month in Social Security benefits. And while this may seem like enough, it’s proving to be anything but.

Average Expenses, Benefits, and Additional Income

With an average payment of $1,666.49 a month, the average retiree will earn around $19,997 this year.

In addition, retirees under full retirement age who choose to return to work for additional income can earn $19,560 without going over the 2022 income threshold. When put together, individuals earn around $39,558 annually.

Unfortunately, the average 65–74 year old spends around $55,000 on living expenses each year. The numbers do not add up. In fact, based on the information provided, there is a $15,442.12 deficit for the average retiree.

Continuing to Work

Seniors who go back to work must walk a fine line. As previously explained, the limit for non-taxed additional income for retirees younger than the full retirement age during 2022 is $19,560 annually.

This limit prevents individuals from earning penalty-free money. For every additional $2 earned above the limit, the Social Security Administration (SSA) withholds $1 from the individual’s benefit payments.

By providing this limitation, seniors are forced into a complex math equation to determine how much additional work is needed.

We Need Change Now

If you’re thinking this is unjust, we completely agree. It’s unjust to ask retirees to choose between compromising their security and comfortable living or getting their benefits withheld; that is where our bill steps in.

Senior Security Alliance’s groundbreaking bill, The Senior Citizens Bill of Rights, dictates that retirees receiving benefits “will no longer be penalized and taxed at higher rates” for working during retirement. With this essential right in place, retirees of all ages can find their benefit payments more secure, allowing retirees to feel more financially secure overall.

Help us urge the politicians in Washington to take a stand for retirees now.

Then, stay informed about our progress and any important changes to Social Security by following us on Facebook and Twitter.