"Retirement by definition means stopping work. But many senior citizens - whether by choice or necessity - continue to work for income past retirement age. Many take part-time jobs while others put in 40 hours per week. For some, side hustles that they enjoyed while working full time continue. Others find consulting gigs related to their careers. It's important to remember that receiving income impacts your Social Security benefits."
"If you are under full retirement age, the Social Security Administration (SSA) deducts $1 from your benefit payments for every $2 you earn above the annual limit, which is currently $24,480. In the year you reach full retirement age (FRA), SSA deducts $1 for every $3 you earn above $65,160. Once you reach full retirement age (67 for most people), you can earn as much as you want without penalty."
Social Security was designed as supplemental retirement income within a three-legged model of employer pensions or 401(k)s/IRAs, personal savings, and Social Security. Many retirees struggle and some rely solely on Social Security. Common ways to offset income shortfalls include continuing to work, taking part-time jobs, consulting, and maintaining side hustles. Earnings before full retirement age can reduce benefits; SSA deducts $1 for every $2 earned above $24,480. In the year of reaching full retirement age SSA deducts $1 for every $3 above $65,160. Once FRA (67 for most) is reached there is no earnings penalty. Delaying benefits increases monthly payments.
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