You can work while you receive Social Security retirement or survivors benefits. When you do, it could mean a higher benefit for you and your family.
Each year, we review the records of all Social Security beneficiaries who have wages reported for the previous year. If your latest year of earnings is one of your highest years, we recalculate your benefit and pay you any increase you are due. The increase is retroactive to January of the year after you earned the money.
If you receive survivors benefits, the additional earnings could help make your retirement benefit higher than your current survivors benefit.
When you begin receiving Social Security retirement benefits, you are considered retired for our purposes. You can get Social Security retirement or survivors benefits and work at the same time. However, there is a limit to how much you can earn and still receive full benefits.
If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount.
If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, that limit is $19,560.
In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2022, this limit on your earnings is $51,960. We only count your earnings up to the month before you reach your full retirement age, not your earnings for the entire year.
If your earnings will be over the limit for the year and you will receive retirement benefits for part of the year, we have a special rule that applies to earnings for one year. The special rule lets us pay a full Social Security benefit for any whole month we consider you retired, regardless of your yearly earnings.
If you receive survivors benefits, we use your full retirement age, for retirement benefits when applying the annual earnings test (AET) for retirement or survivors benefits. Although the full retirement age for survivors benefits may be earlier, for AET purposes, we use your full retirement age for retirement benefits. This rule applies even if the beneficiary is not entitled to retirement benefits.
Read our publication, “How Work Affects Your Benefits,” for more information.
When you reach full retirement age:
In 2022, if you’re under full retirement age, the annual earnings limit is $19,560.
If you will reach full retirement age in 2022, the limit on your earnings for the months before full retirement age is $51,960.
Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits.
Let's look at a few examples. You are receiving Social Security retirement benefits every month in 2022 and you:
Are under full retirement age all year. You are entitled to $800 a month in benefits. ($9,600 for the year)
You work and earn $29,560 ($10,000 over the $19,560 limit) during the year. Your Social Security benefits would be reduced by $5,000 ($1 for every $2 you earned over the limit). You would receive $4,600 of your $9,600 in benefits for the year. ($9,600 - $5,000 = $4,600)
Reach full retirement age in August 2022. You are entitled to $800 per month in benefits.
($9,600 for the year)
You work and earn $63,000 during the year, with $52,638 of it in the 7 months from January through July. ($678.00 over the $51,960 limit)
When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits.
If you are eligible for retirement benefits this year and are still working, you can use our earnings test calculator to see how your earnings could affect your benefit payments.
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefit. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
For 2022 that limit is $19,560.
If you will reach full retirement age in 2022, the limit on your earnings for the months before full retirement age is $51,960.
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.
Use our Retirement Age Calculator to find your full retirement age based on your date of birth.
Use our Retirement Earnings Test Calculator to find out how much your benefits will be reduced.
What counts as earnings:
When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net earnings if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans, or other government or military retirement benefits.
Your benefits may increase when you work:
As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings.
However, we will check your record every year to see whether the additional earnings you had will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount.
When you’re ready to apply for retirement benefits, use our online retirement application, the quickest, easiest, and most convenient way to apply.
If you need to report a change in your earnings after you begin receiving benefits:
If you receive benefits and are under full retirement age and you think your earnings will be different than what you originally told us, let us know right away. You cannot report a change of earnings online. Please call us at 1-800-772-1213 (TTY 1-800-325-0778), 8:00 am – 7:00 pm, Monday through Friday, or contact your local Social Security office.
More Information
How Work Affects Your Benefits
Examples: How We Deduct Earnings From Benefits
Elizaveta Vasilyeva
lawyer
My father lives in a region where the pension is small and there are no allowances.
According to parents, in the period from 1980 to 2000 it was difficult to get an official job, and everything was not easy with work in general. In general, the pension will be ridiculous. Before her, her father was ten and a half years old.
I have a one-room apartment in Moscow. My family and I are thinking that it is possible to register dad in my apartment so that he can receive a Moscow pension. I plan to help myself, but the difference with the Moscow pension is 10,000 R per month. This is a good addition. nine0003
I read in your article "How to become a Moscow pensioner" about two conditions: you must own at least 11 m² and be registered in Moscow for at least 10 years.
Please explain if I need to give or sell these 11 m² to my father or is registration sufficient? What are the risks and what rights will the father have regarding the apartment? He will not move, but stories about loans and deceptions of pensioners are frightening.
You are right to worry about your father's future in advance.
But even if you register it with yourself now, it is not a fact that in 10 years he will be able to receive a Moscow pension. Other conditions must also be met. nine0003
First, let's figure out what kind of additional payment to pensions Muscovites are talking about.
Social supplement up to the subsistence minimum for pensioners. By law, the regions must pay extra to the basic pension for non-working pensioners. But not for everyone, but only for those who receive a basic pension from the federal budget, and only if it is below the subsistence level for the subject where the pensioner receives it.
Art. 12.1 of the Law "On State Social Assistance"
The Moscow government has established a social supplement for pensions for all pensioners who receive a pension from the federal budget, regardless of how many years the pensioner has been living in Moscow permanently. The cost of living for metropolitan pensioners from June 1, 2022 is 15,410 R.
If the pension is below this amount, the pensioner will receive a social supplement.
Regional surcharge up to the city social standard. In addition, the Moscow government transfers a monthly compensation payment to pensioners at the expense of the city budget. It is appointed by the department of social protection at the place where the pension is received. This is a regional Moscow supplement to a pension up to the value of the city standard. In 2021, the standard was 20,222 R, from January 2022 - 21,193 R.
p. 3 of the Government Decree of Moscow dated October 26, 2021 No. 1668-PP
The amount of the monthly compensation payment to the pension for each Moscow pensioner is determined individually, but the full amount of the pension with an additional payment from 2021 should be at least 21,193 RUR.
Non-working pensioners who have been registered and have lived in Moscow for 10 years and receive a pension there for life receive a regional social supplement to a pension in Moscow.
This period need not be continuous. nine0003
Working pensioners can also claim a monthly compensation payment. But not all, but some categories, for example:
clause 6 of the regulation on the calculation and payment of monthly compensation payments
There is a condition here: the salary of such working pensioners should not exceed 20,000 R.
If veterans of the Second World War, as well as people with disabilities of the first and second groups, work, they receive a city social supplement to pension, regardless of income level and position. nine0003
The rest of the working pensioners are not entitled to apply for a regional supplement to their pension in Moscow, regardless of the size of their pension and earnings. They are only entitled to a social supplement up to the subsistence minimum for a pensioner in Moscow, from June 1, 2022 - up to 15,410 rubles.
What to do? 20.10.20
How can a working pensioner increase his pension?
But self-employed pensioners, pensioners who receive income from shares, interest on deposits, as well as pensioners who rent out free living quarters, are entitled to a compensation payment of up to 21,193 R. Such pensioners are considered non-working, since they are not subject to compulsory pension insurance.
clause 5 of the procedure for assigning and paying non-working pensioners a regional supplement to a pension
In addition to regional benefits, a Moscow pensioner is entitled to all federal benefits that are due to all pensioners in the country.
To summarize, the monthly compensation payment to Moscow pensioners is assigned on the following conditions:
It turns out that you can register your father in your apartment in the capital so that he can claim the Moscow supplement to the pension. Registration must be permanent. But where he will work until retirement - in Moscow or not - does not play a role.
What to do? 05/31/18
I don't have my own place to live. How can I register?
At the same time, it is not necessary to make the father the co-owner of the apartment - a residence permit is enough. There are no restrictions on the size of living space for each family member either. nine0003
What documents are required:
Part 2 of the Rules for applying for a regional social supplement to a pension up to the city social standardPDF, 113 KB
Where to apply for establishing a supplement to a pension. You can apply for an additional payment up to the city social standard in person at the MFC or online at mos.ru in the "Regional social additional payment for non-working pensioners" section. The payment is made free of charge. nine0003
If another person receives a pension under a notarized power of attorney issued for a period of more than a year, the father will have to personally appear annually at the Moscow pension fund branch to confirm that he is alive and registered at the place of receipt of the pension.
Therefore, the father will have to come to visit you every year.
Part 19 21 of the Law "On Insurance Pensions"
In addition, if it turns out that he is registered in Moscow, but does not live there, that is, he is fictitiously registered, the prosecutor, the Moscow pension fund, registration authorities and other interested parties may file a claim for declaring the registration invalid. And then he will be removed from the registration account - which means that he will not have the right to an additional payment. nine0003
Art. 2, 5, 7 of the Law of the Russian Federation of June 25, 1993 No. 5242-I
Upon registration, the father will have certain rights and obligations that should be taken into account. So, he will have the right to reside at the place of registration. If your relationship with your father deteriorates, this can lead to problems - it will be possible to evict him only in court.
What to do? 03/12/20
How to write an ex-husband out of an apartment
Some utilities are calculated from the number of registered in a residential area, so the rent may increase.
nine0003
What to do? 02.10.18
I am registering tenants. What am I risking?
I can reassure you about your concerns about your father's loans. Since the father will not be the owner of the apartment, and his income is small, he is unlikely to be able to get a loan without collateral. But you can ask his credit history twice a year to know for sure that there are no other people's loans on him.
Of course, the risk that a fictitious registration will be detected is small. But still, he is. Suspicion may be caused by the fact that the father works in one region, but is registered far from the place of work - in Moscow. nine0003
What to do? 05/15/20
Mom and grandmother want to register in my apartment for the sake of pension
In addition, after retirement, the father will not be able to work officially if he wants to receive additional pay, except perhaps in Moscow in certain positions.
If it is important for him to work and thus feel needed, then he will have to choose: work or additional payment to his pension.
Perhaps you should consider other ways to increase your father's pension. We have already written about this:
06/22/2022
VTB Group
A new tax regime - NPT, or self-employment - has gained popularity in Russia. This is quite understandable. In recent years, the economy has required new approaches to solving the problems of limiting unemployment, as well as maintaining and developing small and medium-sized businesses.
Thus, according to the Federal Tax Service, as of January 24, 2022, more than 4 million self-employed citizens were registered in Russia. Surely many are interested in: how will their pension and seniority be calculated if the legislation for the self-employed only specifies the obligation to pay professional income tax (PIT) and not a word about contributions to the Pension Fund and Social Insurance Fund.
nine0003
The question arises: what is the relationship between self-employment and pension? How much can an officially registered self-employed citizen expect when it's time to take a well-deserved rest?
Today, self-employed individuals pay a tax of 4% on income received from individuals, and 6% - from legal entities. These taxes are distributed as follows: 63% of the amount of the tax paid goes to the budget of the region where the self-employed operates, and 37% goes to the Compulsory Medical Insurance Fund (CHI). nine0003
No other payments and benefits are provided, which means that there are no pension contributions. In the absence of contributions, no points are accumulated, and without points there is no pension. This formula is valid for young people who have not yet accumulated seniority.
What awaits the self-employed? The Pension Fund of the Russian Federation clarified that there are no mandatory payments for pension insurance for persons on the NAP.
That is, a self-employed person works, pays tax during the year, but this year is not taken into account in the insurance period, pension points will not be accrued for it. nine0003
It is worth clarifying where the pension comes from and who is entitled to it.
In the Russian Federation, the insurance pension does not come automatically, upon reaching a certain age (as some people think). The right to an insurance pension gives seniority and pension points. In 2022, the minimum work experience is 13 years and a minimum of 23.4 points, which are indexed according to contributions paid.
There is another type of pension - social, which requires five years of work experience. The size of the social pension is established by the state, with the obligation of annual indexation. Social pension age is taken into account only five years after the general retirement age. For 2022, this threshold is 56.5 years for women and 61.5 years for men. nine0003
Let's say a man has worked less than 13 years on employment contracts and does not have enough points or has been self-employed for a long time.
Then he is entitled to apply for a social pension.
When a self-employed person simultaneously works under an employment contract, the employer pays insurance premiums for him, and the length of service is gradually accumulated. You don't have to worry about retirement. It makes no sense for self-employed pensioners to be nervous either, for them this is a passed stage, and it will not be possible to influence it. nine0003
But what about the rest of the registered self-employed, who are counting on a quiet, relatively comfortable old age? In this case, the state proposes to form a pension independently.
There are two ways to get a pension.
The first is when a self-employed citizen decides not to interact with the state represented by the Pension Fund and independently saves money for retirement. This method is good, but there are risks: inflation, the threat of bankruptcy of financial institutions, fraud, etc.
nine0003
The second way to get seniority is to "purchase" it. A self-employed person has the right to make voluntary insurance contributions to the Pension Fund of Russia. To do this, you need to register with the FIU as an OPS insured.
The self-employed person determines the amount of voluntary contributions. In the My Tax application, the self-employed person sees the cost of the insurance year, which consists of contributions payable, as well as information about the payments made. The accumulated experience will appear at the end of the year. nine0003
Federal legislation establishes the minimum and maximum amount of contributions (FZ No. 167). For 2022, you must pay at least 34,445 ₽. At the same time, you can deposit any amount, keeping in mind that the period of insurance will include the period that was paid in proportion in the annual calculation.
The maximum annual insurance premium in 2022 is 293,356.
8 ₽. This amount is calculated on the basis of the eightfold minimum wage established by the state and a certain rate of insurance premiums of the PFR, multiplied by 12 (8 * 13 890 ₽ * 22% * 12 months = 293,356.80).
You can pay either once a year or in installments throughout the year. Payment is due by December 31st.
The countdown of the insurance period starts from the date of application to the FIU. The seniority is calculated depending on the amount of contributions paid. If the contributions paid in total are less than the established minimum, but paid before December 31, the seniority will not include the entire year, but the number of months will be added in proportion to the amount paid. nine0003
The length of service is credited for a period of 1 month, subject to payment of 1/12 of the amount of a fixed amount of insurance premiums (i.e. 34,445 / 12 = 2,870.42 ₽), and a period of 1 day - subject to payment of 1/ 30 of the monthly amount of the fixed amount of insurance premiums (2,870.
42 / 30 = 95.68 ₽).
The points themselves consist of several parts:
contributions
Contribution ceiling (indexed annually)
PFR contribution rate (currently 22%)
The method for calculating pension points is made according to the formula:
Individual pension coefficient IPC = (DZ / 22 * 16) / 250 400 * 10,
where:
DZ - voluntary contributions 90423
22% - general contribution rate
16% - individual part of the tariff
250,400 ₽ — contributions under the tariff from the marginal base (1,565,000 * 16%)
Therefore, if the minimum contribution of 34,445 rubles is paid, the self-employed person will receive 1.004 points (34,445 / 22 * 16 / 250,400 * 10 = 1.004).
In the case of a maximum contribution of ₽293,356.
8, 8.52 points will be awarded.
In 2022, the cost of 1 point is 104.69 ₽. So how many points can you earn?
When paying the minimum amount of insurance premiums: 1.004 * 104.69 = 105.1 ₽. This will be the minimum amount earned. When paying the maximum contribution: 8.52 * 104.69= 891.96 ₽.
When calculating the insurance part of the pension, a fixed payment is added to the amount of points received. In 2022, it is 6401.1 ₽. The state periodically indexes pensions (and pension points), based on inflation or changes in the wage system.
The main thing to remember is that for a pension you need at least 13 years of experience and at least 23.4 points. Paying contributions at the minimum limit, the self-employed must pay them for about 26 years. The one whose contributions are the highest only needs to pay approximately three years to become eligible for a pension (with 13 years of service). nine0003
Today, the principles and structure of self-employed and individual entrepreneur pension formation differ only in voluntariness.
