"The reality is that a lot of retirees need the money. As of 2022, the typical American between ages 65 and 74 only had $200,000 in retirement savings, according to Federal Reserve data. That could amount to a very small amount of income each year. The average retired worker on Social Security today collects a little more than $2,000 a month. However, someone getting about $24,000 a year from Social Security with only a little bit of supplemental income from savings might need to work to be able to make ends meet."
"However, the earnings test is changing for the better in 2026. Starting in January, you'll be able to earn more money without risking having some of your Social Security withheld. If you're working and under FRA, you'll be able to earn up to $24,480 in 2026 without having any benefits held back, up from $23,400 in 2025. If you're working and will reach FRA in 2026, you'll be able to earn up to $65,160 without having any benefits held back,"
Social Security's earnings test will change in January 2026, raising the income thresholds that trigger benefit withholding for workers who claim benefits before full retirement age (FRA). The earnings limit for beneficiaries under FRA increases to $24,480 in 2026 from $23,400 in 2025. Workers who will reach FRA in 2026 can earn up to $65,160 without reductions. The earnings test does not apply after FRA, and claiming benefits is possible as early as age 62. Many retirees continue working because typical retirement savings are modest; median savings for ages 65–74 was about $200,000 in 2022.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]