Social Security Earnings Test: Avoid Cash Flow Crunch

0:00It's April 28th. This is Durham News Today, powered by AI. Many folks think Social Security kicks in smooth once you file early, but if you're still working, a key rule can slash those checks big time. It's the Retirement Arning's Test from the Social Security Administration. For 2026, if you're under full retirement age all year, they withhold $1 in benefits for every $2 you earn over. $24,480. That age is 67 if you were born in 1960 or later. The limit jumps if it's the year you hit full retirement age, to $65,160, with $1 with held for every. Three over that, only counts earn income like wages or self-employment, not investments or pensions. Spouses get tested separately, so a working partner claiming early faces it alone. This hits hard on cash flow, especially if you're counting those monthly payments for bills. Make sure earning 100,000 a year. You'd lose about $37,760 in benefits, maybe zero checks for.

1:06Months until it catches up. Families relying on that steady flow get thrown off. Turning a reliable income into a surprise gap. The good news is, withheld benefits aren't gone forever. They boost your monthly amount later at full retirement age. Still, that future fix doesn't pay rent today. The land claims often beats this, dodging the test while earning extra credits that pump up payments, plan ahead by crunching your expected earnings before filing. Tools from Social Security make it easy to model scenarios. Skip the early trap, keep your flow steady, and retire on your terms.