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Find Out The Advantages Of Claiming Social Security Benefits In 2024

Social Security Benefits
Social Security Benefits; Source- Newsweek

Seniors are frequently counseled against applying for Social Security until they reach full retirement age (FRA). That age is determined by your birth year; for those born in 1960 or later, it is 67. Social Security can be applied for at any age, beginning at age 62. However, if benefits are claimed before FRA, they would be permanently reduced. And that can be risky as you have no idea when your savings could be reduced to nothing and you would be left with nothing but those perks to survive on.

Social Security Benefits

Social Security Benefits; Source- MARCA

Claiming Social Security Benefits In 2024

Even so, you could be tempted to apply for Social Security in 2024 before FRA. You may be doing that for a variety of reasons, such as wanting to take a trip while your body is still in good enough shape or wishing to reduce to part-time job. However, early Social Security claim filing may lead to more than just a permanent reduction in payment. If you keep working and make too much money, part of that already reduced payment may wind up being withheld. It is legal for you to get Social Security benefits even if your employer pays you a monthly salary. Additionally, after you reach FRA, your earnings from employment will have no bearing whatsoever on your Social Security payments. However, you must be aware of the earnings-test limit, which varies annually, if you take an early Social Security claim while working.

Earning Test Limit Of $22,320

The earnings-test ceiling is set at $22,320 in 2024. For every $2 over the cap in wages, you run the danger of having $1 in Social Security withheld if you make more than that. You can be confident that you won’t totally forfeit the benefits that were withheld. Instead, after you reach FRA, that money will be placed back into your benefits. But keep in mind that early benefit claims result in permanent reductions to your monthly Social Security benefits. If you’re going to suffer a significant portion of that money nonetheless because you’re going to be above the earnings-test limit, there might not be much point in doing so. Workers who begin receiving Social Security benefits before to the full retirement age (FRA) in 2024 but do not reach FRA in that year are subject to the $22,320 earnings-test limit.

You can make up to $59,520 if you plan to attain FRA the following year without having your benefits impacted. From there, for every $3 in wages over the cap, you run the danger of having $1 in Social Security withheld. In any case, if you plan to collect Social Security in 2024 but won’t be reaching FRA by then, you need be aware of the regulations. You can theoretically ignore the earnings-test restriction if you are positive that you won’t be working. If you do intend to keep working, you might wish to restrict the number of hours you work (as well as your pay) or, if you can’t afford it, think about deferring your Social Security claim. In order to secure a bigger monthly payment for life, it can actually make sense to take a year or two to access your savings.

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