Susan E. Thomas CPA
How Earnings Affect Social Security

If you begin to receive Social Security retirement (or survivor's) benefits before you reach full retirement age, money you earn over a certain limit will reduce the amount of your Social Security benefit. In 2013, your benefit will be reduced by $1 for every $2 of earnings in excess of $15,120.*

The chart below shows the effect of annual earnings of $10,000, $20,000 and $30,000 on a $12,000 annual Social Security benefit ($1,000 monthly) for someone who hasn't yet reached full retirement age.

How Earnings Affect Social Security

Source: Social Security Administration, 2012

*Special rules apply in both the year you reach full retirement age and the year you retire if you have not reached full retirement age.

Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011