Yes, You Can Lose Your Social Security Benefits

[@oneillbilder]

The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.

[@Martina-Alan]

Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.

[@DallisonScramosin]

Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.

[@SladeCirrincione]

Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.

[@DallisonScramosin]

Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@SladeCirrincione]

Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info

[@benjaminchaston7202]

My favorite finance channel. She breaks down difficult topics and makes them understandable.

[@trainsplanesandotherthings5187]

Retirement shouldn't be this difficult to figure out... You take 401k too early your are penalized, you take it out too late you are penalized...The government just loves to screw us every way they can.

[@ErinTalksMoney]

Thanks!!!

[@benjaminchaston7202]

@@ErinTalksMoney You're welcome! Thank you for putting out such great content!

[@TheFirstRealChewy]

9:41 It's more like they want you to wait until 67 because there's a higher chance that you'll die without them paying out much of anything.

[@mymail6601]

Yes, I think it’s basically a gamble on an annuity. My bigger concern than getting the most money possible is making sure I don’t end up unable to pay my bills. It’s a reverse life insurance policy.

[@thehomeless_trucker]

A 62 year old male still has a life expectancy of 19 years.... most get 100% of what they paid in after just 5-7 years of collecting.

[@user-ei7ek4nt2f]

If you pass early you’re not going to know you didn’t get as much as you could have because you have no thought process.

[@dallison1961]

Erin, you've stepped up your game. Your are crushing these videos. The content is spot on and the production quality is top notch. Excellent work! And Happy Birthday!

[@the88inParadise]

The plan is to retire at 55, do roth conversions for 11 years and then collect full at 67. :)

[@Dave-sw2dm]

What are you going to live on from 55 to 67?

[@the88inParadise]

@@Dave-sw2dm pension and 401k

[@michaelhernandez2868]

That's what my wife & I are doing. She's 4 years older than I am. She just started taking her soc. sec. pymt.. We're still in decent health. So, I'm waiting just a few more years. We went over several scenarios & found the highest success rate if I wait 'til 67 to start my s.s.. Erin's explanation helps solidify our decision. Thanks much, Erin!

[@PaulGosselinsr]

Happy birthday Erin!

[@jmac03191961]

I worked until 4 days before I turned 63. I'm living off my retirement savings now. I won't take SS until 67 or 70, depending on how the market goes in the future. Loving the retirement life!!

[@Dave-sw2dm]

Have you run scenarios for each age between 63 and 70 to see how the SS income offsets what you are pulling from investments? For me it doesn't make sense to go past 65 before turning on SS

[@jmac03191961]

@@Dave-sw2dm as long as the market doesn’t completely tank, I plan to wait as long as I can to take SS. The SS benefit will grow each year that I wait and it’s nice to have that annuity sitting in my back pocket.

[@RoyPye]

This post does help a lot to help define the benefits. Thanks

[@alanm7186]

I have always wondered about this, you explained it very well, thank you!!

[@brucef1299]

Younger spouse that plans to work for 8 years after I retire. Considering the RMDs on pretax accounts and collecting max SS benefit if I wait until 70, the picture became very clear that I should be living on my pretax retirement accounts from 62 to 70 then starting SS at 70. That same year my spouse will retire at 62 and start collecting her SS early. It's the best solution for us as a couple. Hard work figuring all this stuff out. Love that your videos get people thinking about these difficult topics early so they can study their own situations and make better informed decisions.

[@Maine853]

Agreed October Birthdays are the best ! Happy Birthday Erin! I plan on retiring from work at 63.5 and waiting until my FRA 67 to start SSI. I just turned 58 October 10th... Almost there.

[@ErinTalksMoney]

Happy belated birthday!

[@tothra]

Happy Bday-month, Erin, and thanks for all the information 🎉

[@ErinTalksMoney]

Thank you!! 😊

[@jasonshortphd]

My wife is 62, I am 54. She just started claiming her SSA, and works part time. I am planning to wait until FRA before claiming, although I will retire earlier than that. I will pull from my 401k for those years before we start claiming. I am delaying mostly because my wife’s family has longevity, and I want to make sure she has money to last once I am gone.

[@blongshanks77]

Oh ok, I’m good as long as Pensions and 401ks don’t count. I’m only 46 now, but I have a pension and a 401k with my job, so I plan to collect all 3 when I retire at the age of 62.

[@altonbunnjr]

I’m retiring at 65 and taking social security at 67. House is paid off, have 401k, IRA and personal savings plus two pensions. So I can afford to wait.

[@TEDVANG1]

Erin, you are the best, love every vdo you created.

[@ErinTalksMoney]

Thanks so much! 🙏

[@transitengineer]

Bah bah bah. Wow, you did an excellent job Erin, with this social security issue. While, I support the federal government, their formulas and calculations can really be a bit confusing (in an attempt to keep people from gaming the system). This is why, I always take a half-day of vacation and, ask my questions directly at my local Social Security office. Retired last year at age 63 (with no plans to ever work either full time or part time) and this summer, I applied for my social security after my 64th birthday. One major surprise was that, while my benefits will be based on the month of November, my first check will not be directly deposited into my bank account until the month of December. In addition, I learned the date each month your check will be deposited is based on the day of the month you were born. So, my first social security payment is scheduled to arrive on Christmas Eve (smile ... smile).

[@HugoLopez-vc1bx]

Happy birthday Erin, I love your energy, your vibe, you’re so dynamic! Thanks for the good info that you bring to us! May God bless you and yours!

[@li19831224]

Oh! I like your smile 😃 and happy birthday 🎉

[@maximumutility]

This is a clearer explanation of the recalculation of benefits than I have seen before. The benefit reduction from excess earnings is really then not a penalty and more of a delay?

[@randolphh8005]

Yes, but obviously subject to how long you live.

[@paulseidel5819]

Good summary and Happy Birthday! ❤

[@awildapproach]

I love seeing the bloopers at the end of your videos. Thanks for the great information, as usual, Erin! :)

[@charletfoster8917]

Thanks for this breakdown of SSA benefits🙏🏿😊

[@ErinTalksMoney]

You are so welcome! 🤗

[@danfruchey9004]

Thank you for this great information! Still working at 63 and planning on taking benefits at 67 (my FRA). My wife is five years younger and she left the working world a few years ago due to health reasons. The impact on her spousal benefit if I pass first is significant if I were to take this choice. It’s not just about personal money choices for many people but it’s good to know the options.

[@tmwei396]

Happy Birthday month, Erin.

[@tymua55016]

The bloopers are some of the best! Just seeing you laughing is so funny 😂 best financial advisor out there!

[@randolphh8005]

The “Full Retirement Benefit” is a misnomer. It really just stipulates what rules apply and when. Remember that if you waited to claim till 70 you get an extra 8% per year for waiting. As Erin said you get the money withheld back later if you live long enough. A lot of this has to do on whether you are single or married, and your longevity. The longer you live the better it is to wait. When married the longest living spouse gets the largest of the 2 checks. My wife took at 63, and I’m planning on taking at 70. My check at 70 will be about $4600/month and it will stay with the last person alive. Nice review Erin!

[@yankepilot]

Thanks for the videos, love the out takes as well. Cheers

[@kirklandphil]

Happy Birthday month, Erin. That's good stuff to know, as all three of my kids seem to talk about retiring early. It's big talk in their 20s! Enjoy your weekend.

[@DirettoIZM]

Great social security information (and bloopers!)

[@markwilkins1544]

Hi Erin, great video! Love your bloopers. You look amazing! 😊 Happy Birthday! Hope you have an awesome and blessed weekend!!!

[@MTobin1000]

Erin, your hair is a knock out. Love the new look.

[@shawnbrennan7526]

Creepy

[@MTobin1000]

@@shawnbrennan7526 I apologize. I did not intend at all to come across as creepy. My intent was to compliment only. I'm not a creep. I apologize to you and specifically to Erin if my comment came off that way. It was NOT my intent. I apologize again if it came off that way.

[@shawnbrennan7526]

@@MTobin1000 I’ll just say that every one of her videos has guys commenting on her hair, her blouses, or other aspects of her appearance that have nothing to do with the content of the video. It’s weird.

[@duanec.duanec.sutherland5292]

I retired at age 53, so I am in my early 60s. Many of them resisted me because they couldn't understand the idea of not working if it wasn't necessary. I considered the phases of my life. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." In my instance, I departed the nation after retiring and currently reside in Latin America. It made it possible for me to appreciate my new surroundings while escaping all the bad things that were going on in America. Nobody that I know of regrets retiring has yet to come to me.

[@johnlawton-y1d]

Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement fund has grown way more than it would have with just the 401(k). Haha.

[@Francis-r.b]

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than a million dollars by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

[@LavernSTERN]

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

[@Francis-r.b]

I definitely share your sentiment about these firms. Finding financial advisors like Kathie Daisy Bosco who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@LavernSTERN]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@ryanmower4521]

Happy birthday, Erin! I would have to agree with October being a good month for a birthday since mind is in October as well. Great videos . I like the bloopers at the ends as well!

[@stevesanders6248]

Happy birthday ! Your looking great as always . Thanks for all the great info

[@Brian-nb6fb]

A person could spend days on the phone with social security and not get the answers you provided in this short vlog...nice job! For some federal retirees under age 62, there is a social security supplement provided, which also has earnings limits.

[@victorbaird8220]

I am so excited 😊😊😊❤❤😊😊😊 I love all the videos 😊😊😊

[@j10001]

Happy birthday, Erin! 🎂

[@Mac-ze9ho]

Taking SS at 62 & plan to work PT but stay beneath the earnings limit. Between SS, PT work, 401k, already being debt free and the relatively low cost of living where I’m at I should be fine. Love your videos!

[@ld5714]

Good morning Erin. This was a thorough discussion of the compicated SS benefits topic. I'm certian this will be very useful to your listeners so they are better prepared to navigate the nuanced path to their SS benefits. I appreciate your thoughtful and conversational approach to these videos; it's much like sitting down with a friend and having a conversation. A belated Happy Birthday to you Erin. I hope this year's trip around the sun is your very best yet!! Very enjoyable bloopers and I"m glad you include them, as I feel I gain insight into your personality and get to know you a little better 😉 Have a great week and keep up the great content. Larry, Central Valley, Ca.

[@ErinTalksMoney]

Thanks Larry!!! I love talking about SS, sometimes it seems like a complicated subject, so I like to try and break it down. My birthday is next week, so you are actually early!! I hope you have a great weekend 😊

[@ld5714]

@@ErinTalksMoney I thought I heard you say your dirthday was was 10/01. Oops. Enjoy your special day and do something fun and enjoyable. Enjoy your weekend 🙂

[@ErinTalksMoney]

Oh, this video I filmed on 10/1…so I was excited it was officially my birthday month 😂

[@alexisserrano5158]

Well, after watching your video and learning more about retirement, I plan on working until full retirement age. I also plan to keep working a bit more depending on my future situation on investments. My job is easy and I feel like I can work past 67 making good money.

[@kay203]

All 4 of my grandparents lived past 90... I'm not claiming until 70

[@robpalmer2032]

So glad the rental income is not included! Planning to retire early and use the rental income to live on from 55 to 62 before I can claim the SS benefit.

[@ZoofFusion215]

This is a great channel! My take is take SS $$ as soon as you can for 2 reasons: 1. SS is running out of $$ so take it while you can 2. What if you end up dying at 67 or shortly thereafter?

[@alexisserrano5158]

Some people can’t retire with this economy. So they will work for the rest of their life. No retirement money.

[@shawnbrennan7526]

More importantly, what if you live “forever”? Make sure you consider spousal survivor issues too. Speaking with an expert at SS will help you make the best decision for you.

[@randolphh8005]

The “Full Retirement Benefit” is a misnomer. It really just stipulates what rules apply and when. Remember that if you waited to claim till 70 you get an extra 8% per year for waiting. As Erin said you get the money withheld back later if you live long enough. A lot of this has to do on whether you are single or married, and your longevity. The longer you live the better it is to wait. When married the longest living spouse gets the largest of the 2 checks. My wife took at 63, and I’m planning on taking at 70. My check at 70 will be about $4600/month and it will stay with the last person alive. Nice review Erin!

[@D-Allen]

Great explanation!!!

[@JBoy340a]

Good video to remind people of the pre-FRA trap and reduction for take SS earlier than FRA. Not sure when we will take SS. We have are fortunate to have other sources of income so might go to 70 to avoid paying more taxes and max SS.

[@bvoyelr]

Friendly reminder: this is YOUR MONEY we're talking about. They force us to give 12% of our income to fund social security yet we have to jump through hoops to get that money back. I bet a lot of you are putting 12% of your money toward your own retirement. If you do the math, social security will probably give you around 1/3 of what your own private investments give. Also, pre-tax accounts -- such as a 401k or a rollover IRA -- count as income when you draw from them. This is one of the big benefits of using a Roth account (or just straight brokerage account) -- you can draw post tax accounts down in those early years to maximize your social security benefit and minimize your tax bracket if you choose to employ that strategy rather than letting those accounts grow to minimize your tax burden in the future.

[@MikeS-7]

Smart. Not only do you have to watch when you retire but how much you convert to Roth. That's two pretty sneaky traps waiting for the unsuspecting retiree. I was planning to claim social security at 62 (October), getting my first check in November. Fully retire on January 1. As a high earner i would have been seriously harmed by this trap, i mean rule as they look at your earnings for the entire year -- trap sprung! Boom! Now, i am not 100% certain i should apply January 1 and receive in February. Or, if you are safe to claim in December and get your first payment in January.

[@jeffmorton5539]

You answered my big question that investment income doesn’t count towards earnings limit.

[@nathanyoder4509]

Happy Birthday month Erin!!!🎂🎉🥳

[@brandonblahnik6002]

My plan is to wait to claim Social Security until I am 70 in order to maximize my monthly benefit. I consider Social Security a hedge against longevity risk since I don't know how long I will live. I plan to use various retirement accounts and other sources of income as part of a bridge strategy to retire before age 70. It is good to know this information in case things don't go according to plan and I have to claim Social Security early and work part-time to survive. P.S. Happy birthday! 🎃🎊

[@ninerknight5351]

Never wanted it, never will. I take responsibility to pay for everyone else. Taking a single cent from the feds can’t be tolerated by my conscious. Like when I play sports. I’m here to pull everyone else up, not take everything I’m entitled to. Just wish more people were like me.

[@jonathanfoster2263]

I'm newly retired and just turned 60. I am still up in the air on when to take SS. On one hand I won't necessarily need it at 62 and non smokers in my family tend to live long and I don't smoke and am in decent health with no chronic issues. My thoughts right now is postpone taking it early unless the stock market tanks for several months. If that happens then I can start taking it to avoid an extended draw on my portfolio in a down market.

[@Donkeyearsa]

I don't know. I am 54 and have more money than I need to retire with do to an inheritance and I am still working though only part time. I am still working to give my self a reason to leave the house. Do to mental issues that I have little control over people where always uncomfortable around me so I never really had friends to hang out with and I never had much interest in hobbies so I don't have much to do in retirement so having something to do a couple times a week is important to me.

[@kentloar2175]

I agree... October birthdays ARE the best! 😀

[@bryanwhitton1784]

So, I turn 70 in December and just yesterday signed up to get my SS starting in December and my first payment will be on the 2nd Wednesday of each month thereafter so I will get the maximum monthly payment I can. I don't have to worry about any of this thankfully. But I am really excited being gainfully unemployed.

[@johnl9135]

I'm planning to take it at 67 because I'm behind on my investment vehicles. 😢

[@SuperBrontasaurus]

Useful info. I think it’s pretty lame that the government takes 50%. They do something similar if you work a part time job on unemployment. Nice shirt by the way!

[@christiansailor2880]

Good info!

[@jeannettedrown7687]

Fabulous content. I learn a ton from you. How does reduction in social security work if you're married? For example, my husband is two years younger than me. If I want to claim social security at 62 and he's still working full time, does his income play a part in my social security being reduced? Or is social security only reduced based on my income alone? We file married filing jointly. Thanks so much!

[@user-ej4po2il8m]

I’m 86 years old. Fully retired and work about 16-20 hours a week. I recently sold my rental home and my SS benefits was reduced. Base on this video I can earn as much as I want .

[@MrGrumpy1]

Erin, you speak very clearly and your annunciation is perfect. Might I ask where your accent is from?

[@ErinTalksMoney]

I’m from Michigan 😊

[@MrGrumpy1]

@@ErinTalksMoney Thanks. I have some family and friends there I need to visit. Love your videos. Easy to follow concepts.

[@ErinTalksMoney]

If you ever get the chance, go to Northern Michigan. That’s where I grew up. Look at Traverse City, or Petoskey. it’s absolutely beautiful. And make sure to go in the summer. It’s quite cold in the winter. 🥶

[@MrGrumpy1]

@@ErinTalksMoney A friend who served with me in the Air Force lives in the Upper Peninsula so I would go there too. I joke that she is so far north she has to go south first if she wants to go north.

[@RalphTaylor-g3e]

My company paid a consultant to provide retirement classes when I was 24 and just started saving for retirement. The class was called "The Kids Table," and basically their advice was to go with a target retirement fund that aligned with your 65th birthday. That was 20 years ago. It is the only thing I've ever invested in. How else can I grow my finances?

[@AngelaPhillips-v9x]

Target date funds made me a multimillionaire, but I also watched them drop 40% in a very short time and take a long time to recover. My best suggestion is that you seek the guidance of a fiduciary to avoid mistakes.

[@MehdiVerlinden-w7z]

Agreed, when it comes to retirement planning, following the steps of a well-experienced advisor did the trick for me in barely 5 years, turning my $500k capital into 5-figure monthly dividends. If you want to keep it very safe, then Vanguard TDF may be for you.

[@MehdiVerlinden-w7z]

​@@BruceRogers-t4qCaroline Suzan Olson. is the licensed advisor I use. Just search the name. You'd find necessary details to work with and set up an appointment if you like.

[@FayazMohammed-w1o]

I have seen a lot of positive reviews about her Caroline Suzan Olson online I think she's quite popular.

[@Bygkydcmc]

Happy Birthday!

[@RajReviewsDualSportPhotoGadget]

Very clearly explained.👍

[@ErinTalksMoney]

Thank you!!

[@peterchang2096]

This is a more sophisticated topic but maybe you can do a video how social security can be taxed if provisional income threshold over $25,000 for single filers, also how federal tax from income from qualified dividends and realized long term gains can be zero if income threshold below $44625 single filers

[@JeffTrest-gm8sz]

Though I’m not taking til 67, my understanding is you are mentioning that what SSA takes away from overage of the earnings limit, SSA will pay back in the rears what they took away after reaching 67/full retirement right? Always love the bloopers!! Happy birthday Erin!!

[@plebinil]

Happy Birthday Month..!

[@stephenandrew6410]

I plan to retire at 65 and not work after at a paying job. The quandary for me is whether to wait until 67 to take SS or simply start it when I retire. It would be handy to have it pay for Medicare premiums, for example. But, for the first two years I could simply take more out of the 401k and then get the full SS check at 67. Any thoughts on this?

[@shamsh09]

Great news!

[@charlesrivers2647]

Happy birthday 🎉🎉

[@angiepatterson6338]

Hello Erin. I hope other people read this because you need to apply as soon as you can for reasons that have nothing to do with their system or economics. -Get on the roles as soon as possible. If you’ve had an average work life and put into the system for 40+ years, and should accidentally die in your sixties (and were holding off until you are 70) then you’ll never see a dime of everything that you’ve put in. -A second reason, which is along the same lines as the first, is that the average man dies at 74. If you wait until 70, and are average, you’ll only collect for 4 years instead of 12. -Last of all, there is no guarantee that the occasional rise in SS benefits will keep up with actual inflation so start collecting as soon as you can. Any thoughts Erin (and happy birthday)

[@dharminator]

Life expectancy grows with age. The average 73 year old male has a life expectancy of about 12 years.

[@angiepatterson6338]

@@dharminator But what if you don’t, that number is an average. My own dad died at 71 and thank goodness he started at age 62.

[@shawnbrennan7526]

“If you accidentally die, you don’t see a dime.” Well, I suppose that’s true. (But your spouse will.)

[@michaelhernandez2868]

​@dharminator. I retired at 60 & my wife retired at 55. She's a few years older than I am. She just started claiming her ss.. I'm waiting a few more until 67. We're both in decent health & just living off IRAs, rental real estate & her s.s. pymt.. Her parents passed away in their mid 80s. My parents are still alive & in their mid 80s. My mom's dad made it to his mid 80s but her mom died in her late 40s. My dad's parents, both, lived to their mid 90s & my mom's grandmother was born in 1871 & died in 1972. So, I'm playing the long game. This video gave me a bit more confidence in my decision. Thanks, again, Erin. And happy birthday!

[@angiepatterson6338]

@@michaelhernandez2868 I get by with out it but I’ll stand by my decision. Like they say in Jerry MgGuire- ‘Show me the money.”

[@SpookyEng1]

Happy Birthday month!

[@jesse7603]

Last year around February, I called the Social Security and asked how much I would get if I retired now at 63 years old and they said they wouldn't know until they knew how much I would make in 2023. They told me to come into the office with my W-2's for 2023. As soon as I got them in 2024, I made an appointment and showed them my W-2's. They told me I could not get anything because I was making too much money. They asked if I wanted to stop SS benefits, and I told them I wasn't aware I had signed up. They said I had and said I could stop benefits once. I told him I did and filled out paperwork to do so. a few weeks later I got a letter explaining to me that I could not stop benefits because I went over the limit to stop by one month. Supposedly you have to stop benefits within a year, and I went over. Is there anything I can do? I sure don't want reduced benefits. I plan on working until I'm at least 70 and taking SS at 67. Thanks

[@wagon9082]

Good video

[@davedeboy5726]

What if one spouse continues to work and the other doesn't at all? Does the non worker get full benefits then?

[@ksciscokid9816]

😊 Erin , I have a question for you my dad worked for the state and I get survivors benefits from him I also get ssdi but they limit the amount I can make at my job every month is there a way I could make more or transfer more to from ssdi to survivor benefits or get more for it and get rid of social security disability as it caps my work earnings? Thanks.

[@paulhi9228]

Have you done a video explaining the SS do over within the first year of deciding to begin receiving SS benefits? I did this and was able to wait until 2 years past my FRA to begin my benefits.

[@drz400sy8]

Very interesting topic. Sounds like there is a bit of encouragement to retire and not work. Wouldn’t this affect IRMMA and pay more for Medicaid as well?

[@Cecerene32]

Question: what happens if you die before FRA and don’t have beneficiary or trustees? Can you have your benefits transferred to a trust fund?

[@petrastrickland3503]

Did I miss the part where there is an exception rule in the year you retire early? It’s my understanding that only in the year a person retires early, income received in prior months will not reduce benefits for that year. $22,320 divided by 12 months = $1860 is the monthly average income limit for that year. My question is can you make more than that monthly average as long as you don’t go over the prorated amount for the remainder of the year? I don’t want to assume. Say $1860 x 7 months left in the year = $13,020 income limit for the remainder of the year. If I make $12,000 over the next 5 months vs 13,020 the next 7 months and stop there will I lose any benefits? I would go over the monthly average but not over the prorated income limit for the remainder of the year, again only in the year taking early retirement. What’s your understanding of this rule?

[@ErinTalksMoney]

The earnings limit only applies to the yearly total. Monthly averages don’t matter. You could earn 20,000 in a given month, and then if you earned nothing else throughout the entire year, you would still be under the earnings limit for the year. I hope I understood your question correctly, and I hope that helps 😊

[@joethecomputerguy1]

Wow! That's an amazing video. I know how complicated SS can be and you went in depth! Happy BDay! Are you a Libra? My ex-wife was a libra. Ugh, we won't go there. LOL.

[@ErinTalksMoney]

😂

[@ErinTalksMoney]

I am a Libra! But it works for me, I am very much a peace keeper 😊

[@ForwardThinkingIncome]

We will have to see as we get closer to 62 if we want to draw early. I've been paying in SS tax since I was 15, so yes I'm ready for some money back, lol. Several variables I guess to look at as we get closer.

[@tracythompson1692]

62 on oct 4, first ss 11-5-24. no wages, all investment including schedule e. just planning to drop ss into 3 fund portfolio.

[@avstars]

The way I see it, if you have benefits withheld before FRA due to work and they increase your benefits at FRA, they are slowly giving the withheld benefits back to you eventually.

[@MrEscape314]

Yea with a permanent increase in your payouts.

[@weilin3506]

Could you talk something about tax.

[@toomanybears_]

If I had started taking before my FRA I would not have collected one single penny. The year I reached my FRA I was one paycheck away from having my benefit reduced the month I reached it. Damn lucky timing.

[@licardosimpson8710]

How about withdrawing from your deferred income accounts like IRA or 401k?

[@gatordeen2528]

Erin, Happy Happy Birthday. Please do a video on age to take SSN benefits. I am planning on waiting till 70. What is your option of waiting? Thanks

[@ErinTalksMoney]

Thank you! I will do a video on that soon 😊

[@trackguy4038]

Can you do a story on sports betting and how it is messy up the young generation?

[@TheDannyHamilton]

Can the income be reduced below the earnings limit by contributing to a traditional 401k, or an HSA? Does the IRS standard deduction apply to these earnings before comparing to the limit? If the company only pays a portion of my health insurance premiums, and I have to pay a portion too, is that deducted from the income before the earnings test? Is there anything else that can be done with the income to reduce the exposure to the earnings limit?

[@d0n104]

moral of the story... apply for SS at age 62 whether you plan to continue working or not

[@MikeS-7]

No, that's not the moral of the story. For example, if you are a high earner and take social security when you turn 62, say in October. They look at your earnings back to January and boom, you are screwed with a reduction in benefits until you are 67. That's not a rule it's a trap.

[@alexisserrano5158]

@@MikeS-7Exactly. I am a high earner and it would affect me so bad. Better to keep working until full retirement age and then work as much as you want afterwards depending on future situation.

[@d0n104]

@@MikeS-7 no it doesn't work like that.. because you are working and earning, you will not receive a payment due to the earnings amount and then you will still get a credit for those months when you turn full retirement age. You are not screwed with a reduction because the "reduction" is credited when you actually start to collect.

[@d0n104]

@@alexisserrano5158 you can file in the meantime and still continue to work over the limit and will not be reduced at all once you actually start to collect.

[@MikeS-7]

@@d0n104 that's the point. Full retirement is 67.... In the example, I retired at 62. So, between 62 and 67 you appear to be punished.

[@thehospitalguy1657]

One of the reasons I will keep going until age 70. I am way over the limit and it doesn't make sense to take social security at age 62. We hope to have our home paid off before age 70. If that isn't the case I would continue working and use Social Security to pay our home off.

[@d0n104]

I would still apply at age 62 even though you plan to continue working

[@user-bg9em7ch6k]

His monthly benefit will increase by 77% if he waits until he’s 70, so if he’s healthy and has reason to think, based on his family history, that he’ll live into his 90s, or if he has a younger spouse he (and his spouse) could receive close to a million dollars more if he waits.

[@thehospitalguy1657]

@@d0n104 If I were to claim Social Security at age 62 I wouldn't get a dime from Social Security although I would lock myself into the lower amount. You are only allowed to make $22,320 a year. After that Social Security takes $1 for every $2 you earn. I prefer to keep my income and wait it out until age 70 where by then it doesn't matter how much I make and I can get a lot more money.

[@thehospitalguy1657]

@@user-bg9em7ch6k Which is why I will wait. LOL

[@d0n104]

@@user-bg9em7ch6k he can still file in the meanwhile and continue to work because he will be credited for all those months at full retirement age

[@punkbassandcovers]

Working while taking social security. If you're able, don't even get yourself to that point. Start planning now.

[@ScooterOnHisWay2024]

The "break even" age for not taking it early is typically 77 or 78. Why wait? Research your break even age schedule!!!

[@cm467]

Can we work off the books and collect our social security without any penalties?

[@fasteddy3336]

Question Erin, from the date Tom started to collect his Social Security benefit, does he still have to pay in to Social Security? Can he request that his employer stop taking Social Security out of his paychecks? If not, at what age can he request Social Security stop being taken from his paycheck? Great video.

[@GAFB1122]

From AARP (a good source for retired people)... Do I have to pay FICA taxes on my earnings if I also collect Social Security? (Published October 10, 2018/Updated November 27, 2023) Yes. There is no exemption for paying the Federal Insurance Contribution Act (FICA) payroll taxes that fund the Social Security and Medicare systems. As long as you work in a job that is covered by Social Security, FICA taxes will be withheld from your paycheck.

[@transitengineer]

Yes, you still have to pay with each paycheck. However, you also continue to earn credit in the amount of years and, for the dollars paid into the social security system (smile ... smile).

[@joecochran7797]

My wife and I are going to start collecting at 62 and use those funds to pay taxes on my IRA Conversions to our Roth IRA's in order to decrease future bulk amounts from RMD's.

[@wes_d]

Does this reduction in benefits also apply if your non-working spouse who is two years older starts claiming SS ahead of the retired but working partner?

[@scotta5838]

What if my wife continues to work and we file jointly. Would my SS benefits be reduced then? Happy birthday month to you and thank you for the educational videos!

[@ErinTalksMoney]

No, earnings only apply on an individual basis, as they are tied to your individual Social Security number. So your wife’s earnings would not be subject to your earnings limit if you are collecting Social Security. This applies whether you file jointly or not for tax purposes. You each have your own individual earnings limit if you claim Social Security early.

[@ronesterman7248]

What about if you are married and filling jointly? Especially if one spouse is retired and the other will still be working?

[@humanaffectation9021]

Social security is individual in that respect. Only the person taking SSI early needs to pay attention to income earnings. Also... only income earnings matter for these calculations. Anything that qualifies as capital gains is not counted.