Good news for those planning on collecting Social Security in 2021.
When claiming Social Security benefits before full retirement age (FRA) while continuing to work, benefits will be subject to the retirement earnings limit of $18,960 per year. Earning less than $18,960 per year equates to benefits not being reduced. Earning more than that amount, payments will be reduced by $1 for every $2 earned over the annual limit.
In 2021 The FRA earnings limit has been changed to $50,520 per year. For every $3 earned over that limit, benefits are reduced by $1.
Because both of these limits are higher in 2021 than in 2020 (when the annual limits were $18,240 per year and $48,600 per year for the FRA limit) it is possible to earn more without limiting benefits.
If you are getting ready to collect Social Security income in 2021 and are unsure of how to go about the process, ensuring that you get your full amount, it is always recommended that you speak with a professional who is well versed in the subject. Call the law offices of Mark J. Palmiere today at 585-363-4076.