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The Affect of Earnings on Your Social Security Benefit

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What happens if you are earning a significant amount of money (more than the limits) and you decide to go ahead and begin receiving your benefit at Full Retirement Age (FRA)?

Since you’re already at FRA, you have no limit on your earnings, either as an employee or as a self-employed individual.  Your earnings have no negative impact on your Social Security retirement benefit, although if your earnings are significant and more than some of your earlier earnings years, your future benefits could possibly increase.

In addition, any benefits that your dependents or spouse may be receiving that are based upon your record are also not impacted by your earnings.

The one impact that your additional earnings will have on your Social Security benefit is that taxation will be increased according to the amount of income you receive.  This can amount to as much as 85% of your Social Security benefit being taxed.

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