Will Social Security benefits still be protected at FRA if I return to work? Hearing rules might change
Hey everyone, I've been stressing about something I heard recently. I was planning to go back to full-time work next year after I reach my full retirement age (67). My understanding has always been that once you hit FRA, you can earn unlimited income without any reduction to your Social Security benefits. But last week at a retirement seminar, someone mentioned this rule might be changing soon due to budget concerns. They said Congress was considering applying earnings limits even after FRA in the near future. I haven't been able to find anything official about this. Has anyone else heard this rumor? Is there any truth to it? I was counting on being able to collect my full SS while supplementing with a decent salary. Would really appreciate any insights!
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KingKongZilla
This rule is absolutely still in effect and there are NO pending changes to it. Once you reach your Full Retirement Age, the earnings test no longer applies, meaning you can earn any amount of money through employment without affecting your Social Security benefits. This is one of the foundational aspects of the program and would require major legislative action to change. What you heard was likely just a rumor - there have been occasional discussions about Social Security reform, but eliminating the earnings test exemption at FRA has not been part of any serious proposal I've seen. The only thing that might affect your benefits is if your additional earnings are high enough to make a portion of your Social Security taxable, but that's a tax issue, not a benefit reduction.
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Bethany Groves
•That's a huge relief, thank you! The person who mentioned it seemed pretty confident and it really threw me. So just to double-check - I can earn $200k next year if I wanted to and still get 100% of my calculated SS benefit with no reductions? The taxation issue I understand and am planning for already.
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Rebecca Johnston
Oh I heard the same thing from my brother-in-law!! He said they were changing everything next year but he always gets things wrong lol
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Nathan Dell
The person at that seminar was confusing several different issues. Here are the facts: 1. After Full Retirement Age (FRA), there is NO earnings limit that affects your benefit amount - this has been true since 2000 and remains true today 2. Before FRA, the earnings limit for 2025 is $22,675 if you're reaching FRA after 2025, or $60,140 if you're reaching FRA during 2025 (only earnings before the month you reach FRA count) 3. What you might have heard about are discussions around the Social Security Trust Fund projected shortfall in 2034, which could result in across-the-board benefit reductions of about 23% if Congress doesn't act 4. Some reform proposals DO suggest expanding means testing for benefits, but these are just proposals and would likely grandfather in current retirees The bottom line: As of today and for the foreseeable future, you can earn unlimited income after reaching FRA without any reduction to your Social Security benefits.
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Maya Jackson
•I KNEW IT!! This is exactly why nobody should trust these "experts" at retirement seminars - they're usually selling something and use scare tactics. They've been talking about the trust fund going bankrupt for 30 years and somehow we're all still getting our checks!!
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Tristan Carpenter
I'm going through the same thing right now! I turned 67 three months ago and just started a consultant job that pays pretty well. My SS checks haven't changed at all. In fact, they actually went UP a little bit this month because they recalculated something based on my continued work (not sure what exactly). But I was worried about this too and called SSA directly. Took me FOREVER to get through, but they confirmed that I can earn whatever I want with no reduction.
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Amaya Watson
•When you say it took forever to get through to SSA... how long did you wait? I've been trying for 2 weeks and keep getting disconnected after being on hold for an hour :
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Tristan Carpenter
•Honestly it was ridiculous - I tried for three days and got disconnected each time after 45+ minutes. On the fourth day I used a service called Claimyr (claimyr.com) that someone recommended. They got me a callback from SSA within about 20 minutes. Check out their video to see how it works: https://youtu.be/Z-BRbJw3puU - it saved me hours of frustration!
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Grant Vikers
my wife and me went back to work part time after we got to FRA and our benefits didnt change at all but we had to pay more taxes because of the extra income which was kind of a suprise so keep that in mind its not just about the SS benefits but your whole tax situation
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Bethany Groves
•Good point about the taxes - I was aware of that aspect. Up to 85% of benefits can become taxable if your combined income is high enough. I'm planning to set aside extra for estimated tax payments just to be safe. Glad to hear your benefits stayed stable!
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Rebecca Johnston
whats FRA mean????
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KingKongZilla
•FRA stands for Full Retirement Age - it's when you qualify for 100% of your Social Security benefit. It varies based on when you were born. For people born 1960 or later, FRA is 67. For those born between 1943-1954, it's 66. And for people born between 1955-1959, it's 66 plus a certain number of months.
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Amaya Watson
In my experience the rules for disability are completely different tho! I'm on SSDI and if I make more than $1,550/month they cut me off completely. My cousin is on retirement benefits and works full time with no problems. The system is so confusing!!!
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Nathan Dell
•You're absolutely right - SSDI (Social Security Disability Insurance) has completely different rules from retirement benefits. The amount you mentioned ($1,550/month for 2025) is what's called Substantial Gainful Activity (SGA). Exceeding this amount can indeed cause SSDI benefits to stop because the program is specifically for those unable to perform substantial work. Once SSDI recipients reach Full Retirement Age, their benefits automatically convert to retirement benefits, and then they would follow the retirement rules (no earnings limit).
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Maya Jackson
My friend heard this too and panicked for nothing!! The whole system is BROKEN but at least they haven't messed with the FRA earnings rule YET. But watch out - they're always looking for ways to take away our benefits that WE PAID FOR all these years!!!! The real issue isn't people working after retirement - it's the government STEALING from the trust fund for decades!!!!
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Grant Vikers
•i dont think that's totally accurate about the government stealing from the trust fund they borrow from it but with treasury bonds that pay interest but your right that they need to fix things
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Bethany Groves
Thank you everyone for your helpful responses! You've really put my mind at ease. I'll go ahead with my plans to start that new job next month when I hit 67. I appreciate all the clarification about the difference between benefit reductions (which won't happen) and potential tax implications (which I'm preparing for). And thanks for confirming this isn't changing anytime soon!
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