Working after retirement at FRA - will Social Security reduce my benefits?
I retired last year when I hit my full retirement age (66 and 10 months) and started collecting my Social Security benefits. Now my old school district called and wants me back to help with their teacher shortage crisis. The pay would be pretty good at $36,500 for part-time work. I'm tempted but worried about how this would affect my SS benefits. Since I already reached my FRA before claiming, will they reduce my monthly payment if I start earning this extra income? I've heard different things from friends - some say there's no penalty after FRA, others insist SS will take back some of my benefits. Does anyone know the actual rules? I'd like to help out at the school, but not if it's going to mess up my retirement finances.
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Chris King
Good news! Once you've reached your Full Retirement Age (FRA), the earnings test no longer applies. You can earn as much as you want without any reduction to your Social Security benefits. The earnings limit only affects people who claim benefits before reaching their FRA. The only potential impact would be on your taxes. If your combined income (adjusted gross income + nontaxable interest + half of your SS benefits) exceeds certain thresholds, more of your SS benefits become taxable. Currently, for individuals, if that combined income is between $25,000 and $34,000, up to 50% of benefits may be taxable. Above $34,000, up to 85% can be taxable. So while your SS payments won't be reduced, your tax liability might increase. But that's just normal income tax, not a penalty on your benefits.
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Amelia Cartwright
•That's such a relief to hear! I was worried they might take away some of my monthly payment. The tax situation makes sense - I was planning to set aside some for taxes anyway. Thank you for clearing this up!
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Rachel Clark
my sister went back to work after her full retirement age and they didnt reduce her benefits at all. she was worried too but its only if your like under that magic age number that they do the reduction thing. she still gets her full SS check every month plus her teaching salary.
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Zachary Hughes
Are you ABSOLUTELY SURE about this?? I went back to work after reaching my FRA and Social Security STILL reduced my benefits!! I've been fighting with them for MONTHS trying to get it fixed! Every time I call, I get disconnected or told to call back. It's INFURIATING!!!
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Chris King
•If they reduced your benefits after FRA, there's definitely an error. The law is very clear that the earnings test doesn't apply after you reach FRA. I'd suggest requesting a formal review of your case and bringing documentation of your birthday and when you started collecting. They need to reimburse you for any improper reductions.
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Mia Alvarez
•I had trouble reaching SSA about an error on my record too. After weeks of getting nowhere with busy signals and disconnects, I found a service called Claimyr that got me through to an agent in under 20 minutes. You can see how it works at https://youtu.be/Z-BRbJw3puU - their website is claimyr.com. Saved me hours of frustration when I needed to fix an issue with my benefit calculation. Might help you resolve this faster instead of waiting on hold forever.
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Carter Holmes
Congrats on being asked back! They must really value your experience. I just wanted to add that if you do go back to work, your Social Security benefit could actually increase in the future. SSA recalculates your benefit annually, and if your new earnings are higher than one of your previous 35 highest earning years used in your initial calculation, they'll replace the lower year with your new higher earnings year. Not a huge increase usually, but a nice little bonus!
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Amelia Cartwright
•I hadn't even thought about that possibility! That's a great point - some of my early teaching years had pretty low earnings that are included in my calculation. Thanks for mentioning this additional benefit!
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Sophia Long
everyone here is talking about FRA but what exactly is that? is it different for different people? im 63 and thinking about retiring soon
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Chris King
•FRA stands for Full Retirement Age - and yes, it varies based on your birth year: - If born 1943-1954: FRA is 66 - If born 1955: FRA is 66 and 2 months - If born 1956: FRA is 66 and 4 months - If born 1957: FRA is 66 and 6 months - If born 1958: FRA is 66 and 8 months - If born 1959: FRA is 66 and 10 months - If born 1960 or later: FRA is 67 At 63, you're retiring before your FRA, so different rules would apply to you - the earnings limit would affect you until you reach your FRA.
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Angelica Smith
Adding one more important point - while working after FRA won't reduce your benefits, you still need to report your earnings to the IRS, and you'll need to pay FICA taxes (Social Security and Medicare) on your new earnings, even though you're already collecting benefits. Some people mistakenly think they're exempt from these payroll taxes after claiming, but that's not the case. Your school district will automatically withhold these from your paychecks.
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Rachel Clark
my cousin said that working after you retire will mess up ur medicare costs too, something about IRMAA? has anyone heard of this??
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Chris King
•Your cousin is referring to IRMAA (Income-Related Monthly Adjustment Amount). If your income exceeds certain thresholds (currently starting at $97,000 for individuals), you pay higher Medicare Part B and D premiums. It's based on your tax return from two years prior, so any 2025 income increase would affect your 2027 Medicare costs. For part-time work at $36,500, this likely won't be an issue unless you have substantial other income.
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Sophia Long
go back to work! my husband went back after he retired and it kept him young! he said sitting around the house was making him feel old!
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Amelia Cartwright
Thank you everyone for all the helpful information! I've decided to accept the position at the school. Knowing that my benefits won't be reduced is a huge relief, and the possibility of slightly increasing my future benefits is an added bonus. I'll keep an eye on the tax situation, but that's manageable. Really appreciate all your insights!
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Fatima Al-Sayed
That's wonderful news, Amelia! You're making a great decision. As a retired teacher myself, I can tell you that going back to help with the teacher shortage is incredibly rewarding - you'll be making such a difference for those students and your fellow educators. Plus, the financial peace of mind knowing your SS benefits are secure makes it even better. The school district is lucky to have someone with your experience stepping up during this challenging time. Best of luck with your return to the classroom!
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Sofia Martinez
•This is such an inspiring thread! As someone new to understanding Social Security benefits, I really appreciate how everyone shared their knowledge and experiences. It's heartwarming to see Amelia getting the support and information she needed to make this decision. The teaching profession really needs experienced educators like you both stepping up during these shortages. Thanks to everyone who contributed - I learned so much about FRA rules, tax implications, and even the potential for benefit increases. This community is incredibly helpful!
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