Working after starting Social Security at 70 - will my SS benefits be reduced?

Good news! Once you've reached your Full Retirement Age (FRA), which is between 66-67 depending on your birth year, the earnings test no longer applies. Since you're 70, you can earn as much as you want from working without any reduction to your Social Security benefits. Your neighbor is mistaken or might be confused about something else affecting his benefits. What might happen is that more of your Social Security becomes taxable if your combined income goes above certain thresholds. Up to 85% of your benefits could be subject to income tax depending on your total income. So while your actual SS payment won't be reduced, you might pay more in taxes on those benefits. This is probably what happened to your neighbor - not a reduction in benefits but an increase in taxes.

i went thru this last yr. retired at 68 started SS then got bored lol. got a part time job at lowes and my check didnt change AT ALL. your neighbor is wrong. BUT you will probably pay more taxes so watch out for that part.

The SSA doesn't reduce benefits after FRA no matter how much you earn. But the IRS will tax your benefits if your combined income exceeds certain levels: - If you file individual and combined income is $25k-$34k, up to 50% of benefits may be taxable - If combined income exceeds $34k, up to 85% of benefits may be taxable - For joint filers, the thresholds are $32k-$44k for 50% taxation and over $44k for 85% taxation Combined income = Adjusted Gross Income + Nontaxable Interest + 1/2 of SS Benefits The extra $36k annually from your consulting will definitely impact your tax situation. Consider quarterly estimated tax payments to avoid a surprise tax bill.

THE SSA WILL ABSOLUTELY REDUCE YOUR BENEFITS!! Don't listen to these people! My brother-in-law lost $400 a month when he went back to work last year and he was 71!!! The government LIES about this stuff all the time. They SAY there's no earnings limit after FRA but then they find OTHER ways to cut your check!!! Call them and demand answers before you take that job!!!

I've been working part-time since I started collecting at 68 (I'm 73 now) and can confirm your benefits won't be reduced. However, I had a nightmare trying to get through to SSA when I had questions about my taxes. Spent 3 weeks calling multiple times a day only to get disconnected. Finally used a service called Claimyr (claimyr.com) that got me connected to a live agent in about 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Saved me hours of frustration, and the agent confirmed that working doesn't reduce benefits after FRA but explained exactly how the taxation works based on my specific situation.

Wait working affects your benefits?! I've been collecting Social Security for 3 years (I'm 68) and working part time at Walmart. Nobody told me this could be a problem! Did I mess something up??

This is exactly why i waited til 70 to claim! You get the max benefit PLUS you can work with no penalties. My financial advisor calls it the "win-win" strategy. The only downside is taxes but thats gonna happen no matter what once your income gets high enough. Youre doing the right thing - make that money!

just curious y did ur neighbor think his benefits got cut? maybe he had something else happen like medicare costs going up or something?

As someone who's been through this exact situation, I can confirm what others have said - your Social Security benefits absolutely will NOT be reduced for working after age 70. I started collecting at 70 last year and went back to part-time work about 6 months later. My monthly SS payment has remained exactly the same. The key thing to understand is that there are two separate issues: 1) benefit reduction (which doesn't happen after FRA) and 2) taxation of benefits (which can increase based on your total income). Your neighbor likely experienced #2 - more of his benefits became taxable, which means less take-home money even though his actual SS payment didn't change. I'd strongly recommend keeping good records of your consulting income and setting aside money for taxes quarterly. The extra $36k annually will definitely push you into having a larger portion of your SS benefits taxed. But your actual monthly Social Security payment will stay the same - that's guaranteed by law once you've reached FRA. Go ahead and take that consulting job! You waited until 70 for maximum benefits, and now you get to enjoy both the full payment AND additional income without penalties.

I'm in a similar boat - just turned 70 and considering some freelance work myself. From everything I've read and heard from friends, you're absolutely right that there's no earnings limit once you hit full retirement age. The Social Security Administration is pretty clear about this on their website, even if it can be hard to navigate. One thing I'd add is that you might want to consider how this extra income affects your Medicare premiums too. If your income goes up significantly, you could end up paying higher Medicare Part B and Part D premiums through something called IRMAA (Income-Related Monthly Adjustment Amount). It's based on your income from two years ago, so it wouldn't hit you immediately, but something to keep in mind for future planning. Sounds like a great opportunity though - staying active and earning some extra money while still getting your full Social Security benefits is the best of both worlds!

Just wanted to add my perspective as someone who works in tax preparation - the confusion around this topic is incredibly common! I see clients every year who are worried about the same thing. To put it simply: Social Security will NEVER reduce your monthly benefit payment once you've reached Full Retirement Age, no matter how much you earn. That's federal law. What CAN happen is that more of your Social Security becomes subject to income tax as your total income increases. Think of it this way - your gross Social Security payment stays the same, but your net take-home might be less due to taxes. That's probably what happened with your neighbor and why he thinks his "benefits got cut." For your situation with $3,000/month consulting income, you'll definitely want to make quarterly estimated tax payments. The IRS doesn't like waiting until April for their money on significant additional income like that. Your accountant can help you calculate what to set aside. Bottom line: take the consulting job! You earned the right to maximum Social Security by waiting until 70, and now you get to have your cake and eat it too. Just be smart about the tax planning piece.

I'm glad you found all this information helpful! As someone who's been collecting Social Security for a few years now, I can definitely relate to the confusion around these rules. The key takeaway that everyone has made clear is that your actual Social Security benefit amount is protected once you reach FRA - it's really just the tax implications you need to plan for. One small tip I'd add: when you do start that consulting work, make sure to keep detailed records not just for tax purposes, but also to track how the extra income affects your overall financial picture. Sometimes seeing the numbers laid out quarterly can help you make adjustments if needed (like changing your tax withholding strategy or deciding whether to take on more or less work). It sounds like you've got a great opportunity ahead of you. Getting to stay active, use your skills, and earn extra income while still receiving your full Social Security benefits - that's exactly what a successful retirement should look like! Best of luck with the consulting work.