New income limit confirmed for Social Security benefits in April

The Social Security Administration (SSA) approved a new income restriction for receiving Social Security benefits in April. If you currently receive Social Security payments while working, then you should be informed of the new income restrictions that go into effect this month to ensure that you continue to receive your monthly benefits.  

Since its foundation, the Social Security Administration (SSA) and the federal government have worked together to provide Social Security benefits and Supplemental Security Income (SSI) payments to low-income individuals, senior citizens, veterans, and disabled individuals. These benefits have helped millions of Americans meet their daily living expenses and enjoy their retirement lives. It is important to note that some retired workers decide to continue working while receiving their Social Security benefits. If that is your case, you will receive higher monthly benefits, as the income threshold changed recently. 

The new income limit to receive Social Security benefits starting in April 2024

Social Security benefits are reviewed annually based on the preceding beneficiary’s year’s earnings. If a person’s wages increase in comparison to last year, Social Security benefits will be recalculated, and payments will increase at the beginning of each year. However, there is a limit to how much a person can earn while receiving full Social Security benefits. When a person claims benefits before reaching the full retirement age (FRA) of 62 and earns more than the Social Security Administration’s annual earnings limit, their monthly Social Security benefits are lowered. 

Considering the new rules, the federal government will take $1 from an individual’s Social Security benefits for every $2 earned above the annual maximum. In addition, the income limit for getting assistance was set at $22,320, and for seniors who reached the full retirement age (FRA), which is currently 67, it will be $59,520. For instance, if a person reaches the full retirement age (FRA) but is not working, they will receive the whole sum. It is also worth noting that if your earnings reach this level in 2024, the federal government will deduct the Social Security benefits from them.

Understanding how full retirement age (FRA) impacts Social Security benefits

Social Security benefits are determined by adding an individual’s 35 highest-paid years, indexing for inflation, and multiplying by factors based on the years they earned. Most people can claim Social Security at age 62 with 40 work credits, but waiting until the full retirement age (FRA) results in a larger sum. 

The full retirement age (FRA) has a direct impact on your Social Security benefits. For example, if a citizen retires in 2024 at the present full retirement age of 67, their monthly payments will be $3,822. Now, if they retire at age 62, four years before reaching the FRA, their monthly income will be reduced to $2,710. Finally, if citizens waited until the age of 70 to retire, they would be eligible for the maximum payment, which is set at $4,873 in 2024. 

As a result, the earliest you can begin receiving Social Security benefits is 62. However, if you wait until 70 years of age, you may be able to get the maximum benefit amount, contingent upon your work history and contributions. Although it is challenging to earn the maximum Social Security payments, you can raise your chances of receiving this $4873 monthly amount with the right plan and work history.

Social Security benefits for retired workers in April

Knowing when Social Security benefits are received is important for retired workers because living expenses and budgeting depend on these payments. To get detailed information regarding Social Security payment dates, check the Social Security Benefit Payment Schedule 2024.