Myth No. 4: You Can Keep Working While Claiming Full Social Security Benefits
A big percentage of Americans misunderstand the rules for working when collecting Social Security benefits.
More than half of people in a MassMutual survey wrongly thought they could continue working at any age while also collecting full Social Security retirement benefits.
While you are free to work and receive Social Security retirement benefits, the government will reduce your benefit if you are younger than your full retirement age and end up making more than the yearly earnings limit. In 2017, that earning limit is $16,920. The Social Security Administration deducts $1 in benefits for every $2 you earn above that limit until you reach retirement age.
Things change a little as you get closer to full retirement age. In the year you reach your full retirement age, the Social Security Administration deducts $1 for every $3 you earn above the annual limit. In 2017, this limit is $44,880. And once you are past your retirement age, you can keep working without any deductions on benefits — and there are no limits on your earnings.