A lot of people think it does not make sense to work after retirement. But working after retirement can be very helpful, even if it is only part-time. To begin with, the extra money might come in handy.
The average Social Security recipient only gets $1,920.48 a month these days.
Even if you contribute a small amount to a savings account, it might not be enough to comfortably cover your daily costs and still have money left over for the different things you want to do.
Part-time work will not only help you fill the gap, but it will also give you extra money to cover any unexpected costs.
Social Security has confirmed a new earnings-test limit for 2025
Having a part-time job can also be good for your mental health. Some seniors have trouble with not having enough time off, and it is normal to miss interacting with people once you are no longer working.
For another thing, having a job might make you more active. That could be a good way to keep health problems from happening.
It is important to remember that adults can work and still get their monthly payments from Social Security. You should know about the earnings-test cap, though, if you decide to go this route.
People who get Social Security benefits should know that the earnings-test cap tells them how much money they can make from a job before some of their monthly benefits are taken away.
You will start getting less Social Security benefits if you go over that amount. But benefits that were not given are not lost forever. When you hit full retirement age, they are given back to you.
It is important to know that the Social Security earnings-test cap does not apply to people who have already reached full retirement age.
If it has not already happened, it is only something to worry about. When you hit full retirement age, you can make up to $200,000 a year and not have any Social Security taken out.
What will be the new earnings-test limit next year?
The earnings-test limits for Social Security will get stricter in 2025. At the moment, you can make up to $22,320 a year without having your Social Security payments taken out.
That bar will go up to $23,400 in 2025. After that, $1 in benefits will be taken out of every $2 in pay. But there is a clear earnings-test cap for people who will be old enough to retire in 2025 but are not considered old enough yet.
From $59,520 in 2024 to $62,160 now, the cap has gone up. After that, $1 will be taken out of your wages every week for Social Security.
Still, do not let the thought of losing your Social Security payments stop you from working part-time as a retiree if you seem interested. You can make a good living before delayed benefits become important in 2025.
Now that you know what the earnings-test limits are for the next year, you can carefully plan your hours and pay to avoid a problem.
Social Security beneficiaries might be at risk of getting cuts in their monthly benefits
When the new cost-of-living adjustment (COLA) comes out, it could be bad news for people who get Social Security benefits, especially seniors. The Federal Reserve has warned that these important payouts could be cut even more in the future.
This would mean that retirees would get less money from Social Security.
Now that inflation is under control, the time when Social Security payments grew a lot may be coming to an end. Beneficiaries have also been told by the FED that their monthly payments will probably go down in 2026.
COLA increases are meant to help seniors deal with inflation, but because they look back and use old economic data, they might not fully solve the money problems seniors are having, like rising costs for things like food and power.
People who are retired should make long-term plans for their financial security because the time of big COLA gains may be coming to an end. Starting in 2026, the Federal Reserve has warned that Social Security payments will receive smaller COLA adjustments.
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