3. The earnings limit is going up
Social Security checks don’t always provide enough to live on. Fortunately, there’s no rule forbidding you from working and receiving benefits at the same time. However, Social Security does limit the amount people who retire before their full retirement age (66 for most workers) can earn while still receiving benefits. In 2017, the earnings limit will be $16,920, up from $15,720 in 2016.
What happens if you exceed the earnings limit? Social Security will withhold $1 in benefits for every $2 over the limit you earn. The money isn’t gone forever, though. Once you hit age 66 the earnings limit is lifted and you’ll receive credit for any benefits that were withheld in the past.
Next, let’s see who will pay more in Social Security taxes…