Many people decide to ‘semi-retire’ early and start taking their Social Security Retirement benefit at the earliest age possible. It’s appealing to be able to work part-time or where you have an interest. You may start a small business while making an income and receive Social Security retirement benefits. While early retirement and a part-time job may be of interest to you, it can affect your Social Security Retirement benefits if you aren’t full retirement age. Take the social security earnings test to learn more about your social security benefits.
There’s a lot of confusion about the impact of working. You can still collect Social Security benefits, but if you earn above a certain amount, your monthly benefit will reduce. Here are a few things to know:
Additionally, your benefit could be subject to taxes if your combined income exceeds certain thresholds. Combined income is your adjusted gross income plus one-half of your Social Security benefit. Plus any income earned from tax-exempt investments like muni bonds. There is no age limit and this includes income from all sources, earned or unearned.
To determine if you are at risk for reduced benefits, use the Social Security Earnings Test Calculator. Social Security can be confusing, and if you have any questions regarding your benefits, including when to claim them, contact your local Social Security Administration office to schedule a meeting.
As always, if you plan to take Social Security Retirement benefits early. Or continue to work, take the social security earnings test. We can modify your financial plan to reflect on how working may or may not benefit you.
Additional Disclosure: This article is not endorsed or approved by the Social Security Office or any other Government Agency.
Northland Financial LLC assists families and individuals with retirement income planning. As well as Medicare, Social Security, life insurance, IRAs, college planning, and asset management. Contact us today to schedule an appointment.