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7. Change in Retirement Earnings Test Limits
Last but not least on our list of Social Security shakeups in 2024 is the one related to the earning test limit. While you’re allowed to work after you apply for retirement benefits, if you earn too much, your paycheck is temporarily reduced.
Specifically, the SSA will slash your retirement benefit by $1 for every $2 you make over the limit while you’re younger than your full retirement age. In the year you’re at your full retirement age, the SS will reduce your paycheck by $1 for every $3 you make over the retirement limit. However, a separate threshold is used for this calculation.
For 2024, the earnings limit for workers who are younger than their full retirement age is $22,320, up from $21,240 in 2023. The earnings limits for those working in the year they reach full retirement age are $59,520, up from $56,520 in 2023.
Similar to other Social Security shakeups in 2024, this one will affect a certain number of beneficiaries.
Keep in mind that as soon as you reach full retirement age, there are no longer any income caps for payout reductions. Also, once you reach full retirement age, any payouts that have been deducted are reincorporated into your ongoing monthly paychecks. They are not lost or forfeited.
If you liked our article on Social Security shakeups in 2024, you may also want to read Retirement Milestones: 11 Important Age Deadlines.
One Response
Tell Biden stop the federal tax on our SSI benefits. It was HE who cast the tie breaker vote to tax SSI way back when. I have already paid taxes on SSI when i was working and Iam taxed AGAIN when i collect. WHY??????????????????????!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!