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ABA Family Legal Guide

The Rights of Older Americans

Social Security and Supplemental Security Income

I want to retire, but then take a part-time job. Will this affect my benefits?

Yes. If you are under full retirement age and receiving benefits, you may earn only a certain amount of wages before your Social Security benefits are cut.

  • If you are between age sixty-two and the year you reach full retirement age: For 2004 the earnings limit is $11,640. When you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. Remember, the earliest age that you can receive Social Security retirement benefits remains sixty-two even though the full retirement age is rising.
  • In the year you reach your full retirement age: For 2004, the earnings limit is $31,080. Until the month you reach full retirement age, $1 in benefits will be deducted for each $3 you earn above a different limit, but only counting earnings before the month you reach full retirement age.
  • Starting with the month you reach full retirement age: You will get your benefits with NO limit on your earnings. These new rules became effective January 2000.

    Check with the Social Security Administration office to see what the earnings limit is when you take your new job. If you have reached the full retirement age, you may earn an unlimited amount and still receive your full retirement benefit. Note that these limits apply only to wages. Any money you earn from savings, investments, insurance, and the like will not affect your benefits.

    • American Bar Association Family Legal Guide
    Copyright © 2004 American Bar Association
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