How much money can i make on social security

You can get Social Security benefits even if you still work and make money. But your pension will be cut temporarily if you earn more than a certain amount before you reach full retirement age. This article will cover how much money you can make on social security.

What is the structure of Social Security?

Social Security retirement payments are meant to replace a portion of people’s earnings after they retire. The exact amount people receive is determined by factors such as how much they earned during their lifetimes and the age when they began receiving benefits.

According to the SSA, when you work and pay Social Security taxes, you earn “credits” toward your benefits. These credits are added to your record and grow with each year that you work.

If you were born after 1928, you’ll need at least 40 credits—roughly 10 working years—to be eligible for Social Security payments when you reach the age of 62, which is the earliest you may apply. If you do not accumulate 40 credits, you may still be eligible for Social Security spousal benefits, albeit your monthly payment will be smaller.

Estimating Social Security Benefits

There are various methods for estimating Social Security payouts, some of which may be more accurate than others. These are the methods:

  • Establishing a Social Security account. The Social Security Administration (SSA) provides a free online portal called My Social Security that allows you to analyze earnings records and predict future payments.
  • Using the Social Security Administration’s online benefits calculator. To estimate your benefits, the SSA provides various online retirement calculators. But, keep in mind that they are only predictions based on your past profits and may differ from your future rewards.
  • Visiting a local Social Security Administration office. While the SSA encourages using its website for assistance, you can also go to your nearest office to get an estimate of future benefits. However, as with any online calculator, this estimate should be taken with a grain of salt. It does not take into account changes in income that may influence your retirement benefits.
  • Estimating your Social Security earnings manually. Manually calculating your Social Security retirement benefits necessitates some math. In essence, you adjust your income for inflation before entering them into the Social Security payments algorithm.

Factors Influencing Social Security retirement benefits

The amount of your monthly Social Security benefit is determined by a number of factors. Here are a few examples:

  • Birth year: Your birth year influences when you become eligible for Social Security benefits. The earliest you can start receiving benefits is at the age of 62.
  • Retirement age: The age at which you decide to retire or access benefits can affect your Social Security payouts. For everyone born in or after 1960, the full retirement age is 67. Hence, if you retire at the age of 62, your benefits will be reduced until you reach the age of 67. However, retiring late or after reaching full retirement age can result in higher monthly payments.
  • History of earnings: Your Social Security benefit is calculated based on your salary history. For determining your index-adjusted pay, the Social Security Administration considers your 35 most profitable working years. Having a greater salary and constantly working may boost your monthly expenses. Years spent out of the labor force are counted as “zero years” by the SSA, which may reduce your benefit amount.

Social Security Has Income Limits

The Social Security Administration (SSA) said that the average monthly retirement payment will be $1,827 in October 2021. Most people would still have trouble making ends meet even if they had a steady income every month. Because of this, a lot of people are working longer hours these days.

If you have a job, your Social Security benefits may be cut, but how much they are cut depends on your age and income. Keep in mind that you can start getting benefits as early as 62, even if your full retirement age is 67.

But here’s the thing: If you start getting benefits before your full retirement age, you can only earn up to $21,240 (or $19,560 in 2022) for the whole tax year of 2023 and still get your full benefits. If your income is more than the threshold, Social Security will start taking $1 out of your benefits for every $2 you make.

As you get closer to the age when you can get full Social Security benefits, the rules change. For the months before retirement age, the deduction is $1 for every $3 earned over $56,520 in 2023 (or $51,960 in 2022). At full retirement age, any extra money you make won’t change how much you get each month.

How Much Money Can I Make on Social Security Disability

In 2023, the amount of money you have to make before you can get Social Security disability benefits will go up. People who get Social Security Disability Insurance (SSDI) can only make a certain amount of money each month on top of their SSDI payment (SSA). In 2023, people who get Social Security Disability Insurance (SSDI) will have higher income limits. 

At the moment, the most a blind person can get each month is $2,460, while the most a non-blind person can get is $1,470. As a result, recipients need to know the minimum monthly income levels that could lead to a trial work period (TWP). In 2023, the total will be $1,050. If a Social Security Disability Insurance (SSDI) recipient makes more than the maximum, they may lose their benefits.

You can avoid this by talking to one of our lawyers about how to plan for and protect your SSDI benefits and how to budget for them. It’s meant to help people who are disabled but haven’t applied for benefits yet.

RETIREMENT AT 62: Health Insurance & Social Security Retirement Benefits at 62

People who get Social Security Disability Insurance have their earnings looked at and limited. The disability monthly extra money to get on social security depends on what qualifies them.

The Social Security Administration (SSA) has set an SGA cap that restricts how much extra money a disability can earn. In 2023, SGA recipients can receive $2,460 per month and non-blind people $1,470. This maximum amount is on top of the regular amount you get from SSDI.

The Social Security Agency (SSA) also monitors the incomes of non-SGA beneficiaries. Making more than the SGA limit each month could result in a trial work term. In 2023, you’ll be eligible for a trial work period if you make more than $1,050 in a single month. 

This may confuse SSDI recipients trying to determine their income limit. The Philadelphia disability lawyers can figure out how much money you get each month as a Social Security Disability Insurance recipient so you don’t go over the limit and lose your benefits.

How to Figure Out Your Social Security Payout

The 35 years when you made the most money determine your Social Security payments, which are adjusted for inflation. When you have more than 35 years of service, the lowest-earning years will be taken away. This will make your award bigger. Social Security payouts will decrease for 35-year non-payers due to zero averaging.

Even though your earnings may have gone up slowly over the course of your career, Jim Blankenship, a certified financial planner at Blankenship Financial Planning in New Berlin, Illinois, and author of “How to Get the Most Out of Social Security,” says that the money you make this year may not be one of your highest-earning years after indexing.

A worker who first becomes eligible for Social Security payments in 2023 will get 90% of the first $1,115 of their average indexed monthly earnings, 32% of the next $6,721 of their average indexed monthly earnings, and 15% of the next $6,721 of their average indexed monthly earnings. This is the exact amount of the first payment, down to the penny. There are things like cost-of-living increases and delayed retirement credits that could make this amount go up.

How to Figure Out How Much You’ll Get From Social Security

For decades, American workers nearing retirement have paid payroll or self-employment taxes into Social Security. Over time, you and your employer may have put more than $200,000 into the system on your behalf.

When you make these payments, consider the value of your time. At some point, you’ll have to talk to the SSA about your back Social Security benefits.

Two things are certain: (1) Social Security benefits are not guaranteed, and (2) changes will be needed to keep the system going in the future when millions of baby boomers who have paid into the system for decades start to retire and start to get benefits.

Read Also: SOCIAL SECURITY TAX LIMIT: What is the Social Security tax limit for 2023?

Notwithstanding these uncertainties, how well you live in retirement depends on how well you plan for it. The first step is to calculate your Social Security retirement benefits based on your lifetime contributions.

  • If you want to see a record of your taxed Social Security earnings and a rough estimate of your retirement benefits, you can do so by going to your local Social Security office. However, this won’t take into account future wages or other changes that could affect your monthly payments.
  • Use a benefits calculator on the Social Security website to estimate your retirement benefits.
  • The Social Security Administration (SSA) will determine your benefits once you start receiving them. SSA mistakes can make planning difficult, even if you can usually trust them.
  • Use the detailed method in this article to figure out how much your own benefits are worth. Once you understand a few key ideas, it’s not hard at all. By doing this, you can compare the pros and cons of different choices, like retiring early or staying on the job to get more benefits.

How Much Money Can You Make When You Are on Social Security?

After you reach full retirement age, your benefits will go down by $1 for every $3 you earn over a certain limit in the year you reach full retirement age. In 2023, the maximum income will be $56,520.

How do you determine your Social Security status?

Create my Social Security account to easily check your Social Security status. There you can find your earnings record as well as additional information to assist you in planning for retirement.

How do they figure out how much Social Security I’ll get?

While determining your monthly benefits, the SSA takes into account criteria such as your wage history, birth year, retirement age, and cost-of-living adjustments.

How much Social Security will I receive when I reach the age of 65?

According to the SSA, if you were born after 1960, you would receive around 86.67% of your primary insurance amount. If you were born before 1960, the amount increases.

How much can you earn from Social Security?

The maximum monthly Social Security income is determined by your age at the time you retire or begin collecting benefits. According to the Social Security Administration, the maximum payout for someone retiring at full retirement age in 2022 is $3,345. The maximum sum is reduced to $2,364 if you retire at the age of 62 in 2022. But, retiring at the age of 70 in 2022 raises the maximum payment to $4,194.

What Age Can I Collect Social Security?

You can start getting your Social Security retirement benefits when you are 62 years old. But when you reach your full retirement age, your benefits will go up to their highest level. Interest is added to your benefits from the time you reach full retirement age until you turn 70. After that, you lose them.

How Does Social Security Work?

Social Security replaces some of your pre-retirement income based on your earnings. Your earnings history and retirement benefits start date determine how much of your average pay Social Security will replace.

What Are the 3 Types of Social Security?

The following are;

  • Retirement.
  • Disability.
  • Family members, such as a spouse or children, rely on them.
  • Survivors.
  • Medicare.

How Is Social Security Paid Monthly?

The payments will be made in the month after the month for which benefits are owed. For example, you would get your payment for July in the month of August. In general, the birthday of the person whose earnings record you are using to get benefits will tell you what day of the month you will get your benefits.


Any money that is taken from your benefit will not be gone for good. At full retirement age, your Social Security pension will be evaluated and increased. For every $2 or $3 you earn over the threshold before retirement, your Social Security payout will reduce by $1. At the age of full retirement, you can get your full pension, no matter how much money you have.

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