Can I work and Collect Social Security? Will There Be a Penalty?

Show Notes

In this episode, we dive into a common question: Can you work and receive a wage income while collecting Social Security? The answer may surprise you, as it’s yes, maybe, and no. Join us as we explore each response in detail, discussing whether your benefits would be reduced and uncovering ways to reclaim any deductions. Additionally, we’ll discuss four key ingredients to consider when deciding the optimal time to take your Social Security benefits.

In this episode, Scott will talk about the three critical time periods to understand when it comes to Social Security. He’ll then use a hypothetical scenario to show what deductions would realistically look like if you earned over the earnings limit before your full retirement age. It is important to note that this episode is based on the most recent IRS guidelines, which are updated every year. Join us for a helpful breakdown of how this process works and take away some tips on getting the most out of this important benefit!

Here’s what we’ll discuss in this episode:

The three important periods of time to understand when it comes to Social Security. [2:33]

Time period 1: Deductions prior to your full retirement age. [5:47]

Time period 2: Deductions in the year of your full retirement age. [10:14]

Time period 3: Once you reach your full retirement age, there are no longer any deductions when collecting Social Security. [14:12]

Deducted benefits don’t go away forever. [16:00]

So, when should I take Social Security? [20:04]

Thanks for checking out this episode of the podcast. If you’d like to learn more about financial and retirement planning, check out our YouTube channel here.