If you were born in 1956, 2022 will be your full retirement year, and your retirement month will be the month you turn 66 plus four months. Now is the time to do the math so you don’t lose the retirement benefits you could have started taking in January 2022, even if you don’t plan to stop working. The earnings limit for 2022 is $51,960 for persons born in 1956.
Let’s look at an example. If you were born in March of 1956 and are currently earning about $100,000 a year from a job or from self-employment, you could possibly start taking a retirement benefit in January 2022, keep on working, and not be offset for your earnings. Social Security only counts the earnings for months prior to your full retirement month. In this case, July is your full retirement month. At $100,000 a year, you’re only earning $50,000 through June 2022 (under the $51,960 limit) and could take a slightly reduced benefit starting January 2022. This means thousands of dollars in your pocket before July and you keep working earning $100,000 for the year. Plus, if your spouse is eligible for spousal benefits, they can file on your record January 2022.
However, this may not be the best choice for some who wants to wait until they turn 70 to maximize their retirement benefit, but if you were going to file in July 2022 (your full retirement month) this is a strategy you may want to consider. For more information on this strategy, contact me for a retirement benefit analysis.
You can file for a January 2022 benefit any time after August 31, 2021. The online application process is the best way to file and I am happy to assist clients with the process. Application submission is a service I offer as a convenience for clients not familiar with the online process or who just don’t want to mess with it. My fee is $225 per online application.
I wish you all a happy and prosperous 2022!
About Dennis Heywood
Denny’s career with Social Security has provided him an in-depth, working knowledge of the Social Security Administration’s internal organization and processes. An expert in all phases of SSA programs, retirement, survivor, disability, and Medicare, Denny has expertise with the complex Social Security regulations based on more than 40 years of experience.