When you filed for Social Security benefits, there were a lot of rules that might’ve been hard to follow, and the experience might not have been what you expected.
The Motley Fool reports there are Social Security surprises, and some are on the negative side.
First, seniors might be disappointed to find Social Security only replaces about 40 percent of their final working income.
Depending on what you might get from savings and where you live, benefits can be subject to federal and state income taxes.
For people working after filing for benefits, there are limits on what you can earn before some benefits could be withheld. If you don’t reach full retirement age in 2022, you can earn up to $19,560 before being affected. Above that, $1 in benefits will be withheld for every $2 earned over the limit.
The Social Security Administration also determines if an annual Cost-of-Living Adjustment (COLA) is needed to keep pace with inflation. The COLA is getting a nice jump in 2022 to 5.9%, but it likely won’t be that high every year.
You are Entitled to Your Hard-Earned Money
Extra income can help Social Security benefits go further. Here at Council of Seniors, we know Congress must pass The SAVE Benefits Act. This legislation is needed to make up for inadequate Social Security cost of living adjustments (COLAs) in some recent years. It needs to be passed so that $581 can be repaid to seniors.
Please sign our petition right away. Working together, we’ll show Washington politicians how many people support this bill.
Do you plan to work and collect Social Security? Leave us a comment and let us know.
Follow us on Facebook and Twitter for more of our latest updates about The SAVE Benefits Act.