Understanding the Impact of Working and Claiming on Your Social Security Benefits
How the government calculates your Social Security benefit
The Social Security Administration bases your retirement benefit on your average monthly income over your 35 highest-earning years, adjusted for inflation.
Watch out for the earnings test
When working and claiming Social Security, the government withholds $1 from your checks for every $2 you earn over $22,320 in 2024 if you'll be under your FRA all year. This is known as the earnings test.
But the earnings test could still be problematic if you were counting on your checks to help you cover your expenses today. Try to estimate how much you'll earn from your job this year and how that could affect your Social Security checks. Then adjust your budget accordingly.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.