What is the effect of working while receiving Social Security retirement benefits?

When an individual decides to work while receiving Social Security retirement benefits, their benefits may be subject to reduction if their earnings exceed specific thresholds set by the Social Security Administration. This means that if a recipient's income from work surpasses these limits, their Social Security benefits could be reduced.

The amount by which benefits are reduced depends on how much the individual's earnings exceed the established limits. There are different thresholds depending on the age of the beneficiary relative to their full retirement age. For those under full retirement age, there is a certain earning limit, and any earnings above that may result in a reduction of benefits by a specified amount for each dollar earned over the limit. Once reaching full retirement age, beneficiaries can earn any amount without affecting their Social Security retirement benefits.

This system encourages beneficiaries to remain in the workforce while still providing a safety net, ensuring that a balance is struck between reduced benefits and continued earnings from employment.