Cate9
Employee Tax Expert

Retirement tax questions

You are correct that your social security benefits can be reduced if you are still working and under the full retirement age.  Here is a link to a pdf that may help https://www.ssa.gov/pubs/EN-05-10069.pdf 

 

From this pdf here is a basic guideline as to how they may reduce your benefits. 

If you’re younger than full retirement age
during all of 2023, we must deduct $1
from your benefits for each $2 you earn
above $21,240.
If you reach full retirement age in
2023, we must deduct $1 from your
benefits for each $3 you earn above
$56,520 until the month you reach full
retirement age.

 

As for the pension, you generally would not have a reduction of your pension benefit is you are continuing to work.  However, that is a question best addressed by contacting HR or the administrator of the pension as there could be restrictions based on your specific type of pension plan. 

 

If you delay taking social security, there is not penalty for earning additional income through working.  However, if  you delay your benefits until age 70 your base social security benefits will not continue to increase.  Here is a link to help determining how delaying your beginning date of social security benefits will effect your monthly payments. https://www.ssa.gov/OACT/quickcalc/early_late.html

 

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