Social Security early retirement earnings limit - calculating benefit reduction with $50K salary

You've got the basic formula right, but you're misunderstanding how the reduction works. The SSA doesn't reduce your annual benefit by $13,300 - they withhold ENTIRE MONTHLY PAYMENTS until they've withheld the equivalent amount. So if your monthly benefit is $1,800, they would withhold about 7-8 months of payments completely ($13,300 ÷ $1,800 = ~7.4 months). You'd receive payments for the remaining months only. And yes, once you reach your FRA, the earnings limit no longer applies regardless of how much you earn. But remember, taking benefits early means a permanent reduction (about 30% less at 62 compared to FRA).

wait arent u confusing SSI with regular social security? i thought the earnings limits only applied to disability not retirement

This is why I think it's RIDICULOUS to claim early if you're still working!! The government basically STEALS your benefits and you also take a PERMANENT REDUCTION just for claiming early. I'm waiting until 70 to maximize my benefit - that's an 8% increase EVERY YEAR you wait after FRA. The math is clear!!

I recently went through this exact situation. Your calculation is correct, but as someone else mentioned, they don't reduce each check - they withhold entire months of payments. The good news: after you reach FRA, they'll recalculate your benefit to give you credit for the months that were withheld, which increases your monthly amount slightly going forward. One thing to consider: if you expect to make $50K consistently until your FRA, you might want to just wait to file. You'll get very little benefit while working, and you'll have a permanently reduced benefit amount for life. Unless you really need the few months of payments you would receive, waiting could be more advantageous financially.

I tried calling SSA multiple times to ask similar questions and kept getting disconnected after waiting for hours!!! So frustrating when you just need a simple answer to plan your retirement!!! Did anyone actually manage to speak to a real person there recently?? I'm about to give up 😩

Also dont forget that ur SS benefits might be TAXABLE depending on ur provisional income!!! If u make 50k from work plus SS benefits, ur almost certainly going to have 85% of ur benefits taxed!!!! Just another way they get u coming and going!!

My cousin started taking SS at 62 while still working part time and it worked out for her. Just saying not everyone's situation is the same.

One more important point: The earnings limit only applies to wages or self-employment income. It doesn't count investment income, pension payments, annuities, interest, or dividends. So if a significant portion of your $50K comes from these sources, you might face less benefit withholding than you calculated.

what happens if u earn MORE than u expected? do they make u pay it back or just take it from future benefits?

I went through the exact same thing last yr trying to figure this all out. My advise is go to the ssa.gov site and use their retirement calculators. They were really helpful for me to see all the different scenarios.