how much can you make in 2025 and still draw social security

MASKODING

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13-11-2024

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How Much Can You Earn in 2025 and Still Get Social Security?

Planning for retirement often involves a delicate dance between savings, investments, and Social Security benefits. For many Americans, Social Security plays a vital role in their retirement income. However, there are income limits to consider, particularly if you're still working after reaching your full retirement age.

Understanding the 2025 Income Limits:

The Social Security Administration (SSA) has annual income limits for individuals receiving retirement benefits who continue to work. These limits affect how much of your Social Security benefits are withheld.

For 2025, the earnings limit is expected to be $20,240. This means if your earnings exceed this limit, a portion of your monthly Social Security benefit will be withheld.

Here's how it works:

For every $2 you earn above the limit, $1 of your benefit is withheld. However, once you reach your full retirement age, this limit is removed.

Example:

Let's say you're 66 years old and plan to work in 2025. You reach the $20,240 earnings limit in July. From July to December, you earn an extra $5,000. Here's how the deduction works:

• Excess earnings: $5,000
• Amount withheld: $5,000 / 2 = $2,500
• Reduced benefits: $2,500 / 12 months = $208.33 per month

Important Considerations:

• Full retirement age: This age varies depending on your birth year. You can find your full retirement age on the SSA website.
• Deferred benefits: If you choose to delay receiving your Social Security benefits past your full retirement age, your benefits will increase.
• Early retirement: If you claim benefits before your full retirement age, your benefits will be permanently reduced.

How to Manage Your Income:

• Strategic planning: Review your income and expenses, factoring in potential Social Security deductions, and adjust your work schedule or income streams as needed.
• Consult a financial advisor: Seek professional guidance to understand the implications of your earnings on your Social Security benefits and retirement planning.

Remember: The information provided here is based on current SSA guidelines and is subject to change. It's essential to visit the official SSA website for the most up-to-date information.

Source:

• Social Security Administration Website: https://www.ssa.gov/

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Consult a qualified financial professional for personalized recommendations.