What's Happening
12 mins ago

Robert Kennedy Jr. Says He Will Advise All US Water Systems To Remove Fluoride On Day 1 Of Trump Administration — Ex-President: 'Sounds OK To Me'

benzingabenzinga.com
48 mins ago

Should You Buy Arm Stock Before Nov. 6?

foolfool.com
1 hour ago

3 Top Energy Stocks to Buy in November

foolfool.com
1 hour ago

Elon Musk Says 'We Can Cut $2 Trillion Out Of The Harris Biden Budget' And That Americans' Money Is Being Wasted On Unnecessary Spending

benzingabenzinga.com
1 hour ago

The Stock Market Will Be Watching These Congressional Races Very Closely on Election Night

foolfool.com
1 hour ago

3 Top Dividend-Paying Utility Stocks to Buy in November

foolfool.com
1 hour ago

Is Rocket Lab Stock a Buy Before Nov. 12?

foolfool.com
2 hours ago

1 Monster Stock That Turned $10,000 Into Almost $5.6 Million in 20 Years

foolfool.com
2 hours ago

The Funding: Why crypto M&A deals are on the rise

theblocktheblock.co
4 hours ago

Mark Cuban's Million-Dollar Advice To Teens: 'If I Were 16 Again, I'd Start This Lucrative Side Hustle'

benzingabenzinga.com
4 hours ago

If You Invested $1,000 In Apple A Decade Ago, Here's How Much You'd Have Now

benzingabenzinga.com
4 hours ago

Bill Gates Surprised By Lack of Interest In These Essential But 'Boring' Topics

benzingabenzinga.com
4 hours ago

Trump Sues CBS For $10B, Says Harris Interview Intended To 'Mislead The Public'

benzingabenzinga.com
4 hours ago

Bitcoin price falls, forward volatility jumps as traders brace for election: Analyst

theblocktheblock.co
5 hours ago

Trump Slams Cuban Over 'Strong Women' Remarks: 'He's Weak Physically And Mentally'

benzingabenzinga.com
5 hours ago

FCC Commissioner: Harris 'SNL' Cameo Violated Equal Time Rule

benzingabenzinga.com
5 hours ago

Is It Time to Buy October's Worst-Performing Dow Jones Stocks?

foolfool.com
5 hours ago

Elon Musk's Mother Suggests She May 'Vote Ten Times' – Or More

benzingabenzinga.com
5 hours ago

Billionaire Investor Ken Griffin Foresees New Highs for the Market After the Presidential Election. Here's Why.

foolfool.com
5 hours ago

Where Will Coinbase Be in a Year?

foolfool.com

Is This Social Security Myth Messing With Your Retirement Plans?

A lot of people end up getting thrown for a financial loop once they retire and realize just how many expenses they’re facing. Unfortunately, many seniors learn the hard way that even a paid-off home can be costly to maintain. And even healthy retirees often find themselves spending a large chunk of their limited income on healthcare, from Medicare premiums to copays for medications.

If money has gotten tight for you in retirement, you may be looking to go back to work to boost your income. And if so, you may be in good company.

A person standing in a cafe wearing an apron.

Image source: Getty Images.

In a recent Motley Fool survey, 50% of respondents said they’re considering returning to work because their Social Security benefits don’t do a good enough job of covering their expenses. And given that benefits are only getting a 2.5% cost-of-living adjustment in 2025, more seniors may opt to return to work in some form in the new year.

You may have heard a rumor that there’s no point in working while you’re on Social Security, because that’ll result in having your monthly benefits taken away. But that’s far from the truth.

You can work and collect Social Security at the same time

It’s absolutely false that working means losing your Social Security checks in full automatically. It’s true that some seniors risk losing a portion of those benefits if their earnings exceed a certain limit. But that doesn’t mean you can’t supplement your benefits with income from a job at all.

In 2025, you can earn up to $23,400 without having to worry about losing out on any Social Security. From there, you risk having $1 in benefits withheld per $2 of earnings.

If you’ll be reaching full retirement age in 2025, you can earn even more money without risking having benefits withheld. In that case, you only have $1 in Social Security withheld per $3 of earnings for income beyond the $62,160 point.

And remember, withheld benefits aren’t forfeited for good. You get that portion of your benefits back once your full retirement age arrives.

Also, once you reach full retirement age, the above income limits don’t have to concern you. You can earn $100,000 a year, and you’ll still get the complete monthly Social Security benefit you’re entitled to.

Don’t take part-time work off the table in retirement

Working as a retiree may become necessary for you due to financial constraints. But even if money isn’t tight, you may find that having a job lends to a better quality of life.

Not only might a job keep you nice and busy, but it could also serve as a social outlet for you. And you may find that getting out and about helps you stay physically strong and healthy.

So don’t buy into the myth that if you work as a retiree, you’ll have all of your Social Security taken away. You may, in some cases, have some of your monthly benefits withheld. But even that isn’t a permanent loss. And if you keep your earnings to a certain limit, you can enjoy the benefits of a job without temporarily losing out on any Social Security at all.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.

Related Posts

Image source: Upsplash/The Motley Fool Costco and Sam’s Club are two popular warehouse club retailers. Many shoppers join warehouse clubs to shop members-only deals to

Image source: Getty Images Unexpected car troubles are always stressful. It’s harder to get around while your car’s in the shop, and you may be

Image source: Upsplash/The Motley Fool Many people have fitness and health goals. Whether you want to get into better shape, be more active, or lose

Image source: Getty Images Whether you’ve switched jobs or just want more control over your investments, most of us have faced rolling over an old