If you make 50000.00 a year how much would your Social Security payments be reduced at age 62?

Answer 1

This is impossible to answer with the information provided, because the earliest you can file for Social Security retirement is your sixty-second birthday. Bear in mind, when you retire at 62, your monthly benefit will be approximately 75% of the amount you would receive if you retired at full retirement age (probably 66).

There are special earned-income rules for the first year of retirement, such that you are not penalized for any income earned before your date of retirement, regardless of the amount. After the date of retirement, you can earn only $1,180 per month (one-twelfth of $14,160 per year) before incurring a reduction in benefits of $1.00 for every $2.00 earned over the limit.

From age 63 until the year you reach full retirement age (65 if born before 1943; 66 if born between 1943 and 1954), you can only work and earn $14,160 per year without penalty. Income earned above the limit temporarily reduces your benefit by $1.00 for every $2.00 over the limit.

$50,000 - $14,160 = $35,840

$35,840/2 = $17,920

(qualified benefit) - $17,920 = (remaining benefit)

Earnings of $50,000 would temporarily reduce your benefits by $17,920 per year, or $1,493.33 per month. If this amount exceeds your entitlement, your monthly payment would be zero.

When you reach full retirement age, the earned-income cap is permanently lifted, and your benefit will not be reduced regardless of the amount you earn.