Are any of you working during retirement while drawing a social security check? If you are, what advice can you give to someone who is considering it? I retired in 2020 @ 62 (Not FRA / currently 64) and started drawing my social security in 2021. My old employer just called me and asked if I would return to work. I told them I would consider it, but I was only interested in part time work and could only make 21,240 per the new 2023 SSI guidelines. TIA

I’m doing it. Last year I started drawing at 62. I still take an odd job in my trade field occasionally. At the end of the year I had 2 nice paying little projects. One put me at the limit. The other I told the customer to not pay me til after the first of the year. Then did a one night deal last week. I’m pretty much at my limit for the year already.

I work every day but don't get paid. Does that count?

If you're not at your full retirement age drawing SSI and you go over the allowed limit while working, they will tax the H*ll out of you. Something like 2 dollars for every dollar you earned.
But, if you're at full retirement age and working, you can draw SSI and make as much money without any tax issues.

This is what I was told, should still be true.

Cash is king.

here is the deal - if you are generating income (whether while drawing SS or not) and paying more taxes you are still making money! - if your taxes are 30% on your income then you are still making 70% !

Years ago I complained to my CPA about how much in taxes I was paying and her response was "so you want to make LESS income in order to not pay taxes?" - never forgot that - earn all you can and pay your taxes and guess what? You win!

Pretty sure you get that back after turning full retirement age.

I don’t have a great tax knowledge at all but that’s the way I always understood it.

I believe they deduct $1 for every $2 you earn above the limit, but I'm no financial planner.

I called the SS office in late 2021 just before I filed for early SS benefits. Thay were actually easy to get hold of and answered my questions. This was when all the offices were still closed due to Covid.

Think you have it backwards.
Was told for every $2.00 over you pay back $1.00 ...
Took early retirement also, had ta find part time work just ta get bye.
Closing Manager @ $Tree.
Last year took anew job making most money, (per hour) so checked into it.
Was told the "For every $2.00 make over, have ta pay $1.00 back"

edit : @ 65&1/2 you can make up to $50,000 b4 have ta pay back.

Best wish's.

I worked part time after I retired. I was real careful not to go over the limit. At tax time I got a surprise. I had to pay taxes on part of my social security. Social security will not withhold taxes so it comes out of your pocket. They get you one way or another.

I don't know what marketable skill set you have but if you work in ANY trade you can do cash jobs all day long for as long as you feel like working.

They will withhold - it's up to you.

I have them withhold a good-sized chunk that is enough to cover one of my quarterly payments the next year.

If you’re in good health you should look at going back to work full time to make up for the poor decision to file before your FRA. You will have the right to suspend your monthly benefit if you choose to work full time and your benefit will start growing again all the way to 70 if you work that long, if not start it again at FRA and your check will be much higher and you can work as much as you want because you are not subject to earnings restriction.

Lots of folks do not realize that your SS benefit grows at a guaranteed 8% for each year you delay taking it - you have to start takstart taking it at age 70. If you do not need the money to live on then consider delaying to ag 70

The breakpoint is around age 80 that you come out ahead by waiting so you should also take your health and family history into account when making the decision. I start drawing mine this year in May when I turn 70 - with my wife's spousal it ends up being a pretty good chunk of money each year

Furgitaboutit.....retired friend says cash is king and he also carries a throw down receipt book

say what??

If I was still in good health I wouldn’t have started taking SS at 62. Heck, making it to FRA is a gamble.

Sorry tlk...weak attempt at some Yankee humor
Friend was longtime electrician. He retired and did side jobs and was making a ton of cash on small jobs. If they wanted a receipt..he had a ghost receipt book. They got a receipt
And he wasn’t ashamed one bit. Figured he paid WAY more than his fair share over the 50yrs he worked full time since they’re so many losers that pay no taxes

Lol - no worries - I was trying to follow - love that guys logic!

Got it - hang in there Bud

Not a tax per se. They just keep $1 out of every $2 of your benefit when you are not at FRA and exceed the income limit. Tax comes at IRS filing time. The IRS will tax up to 85% of your benefits above certain income levels. If you stay below those limits you pay no tax on SS benefits. Another thing to consider when working and drawing SS is the "high earner" surcharge on Medicare part B and D. They base it on the previous year tax return. The year I retired they sent me a letter stating my Medicare payment was going up. I sent them a current year estimated tax return and they reduced it.

Average lifespan is 80.......

What is full retirement age?