I decision many older Americans struggle with is when to file for Social Security. If you lot claim benefits too early on, you might reduce them on a permanent basis. But if you lot wait too long to sign up for benefits, you'll take chances getting less money in your lifetime if you wind up passing abroad at a immature historic period.

If you're still working, the determination to claim benefits tin can be even trickier. That's because there are rules you'll need to take into account that could impact your benefits.

Each yr, Social Security imposes what's known every bit an earnings test for workers who earn coin from a chore but also collect benefits. Income that exceeds the earnings test limit could result in withheld benefits, then it'south important to know what those thresholds wait like. Hither'southward what seniors need to know for 2022.

Person working on chair in workshop

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What are the 2022 earnings examination limits?

Earlier we dive into side by side yr's earnings test limits, let'southward exercise a refresher on the rules for claiming Social Security. The earliest age to sign up for Social Security is 62. But you're not entitled to your total monthly benefit -- the ane that'southward calculated based on your earnings history -- until y'all reach full retirement age, or FRA.

FRA depends on your twelvemonth of birth. You lot can consult this table to see what yours looks like:

If Your Yr of Birth Is

Your Total Retirement Age Is

1943-1954

66

1955

66 and ii months

1956

66 and four months

1957

66 and 6 months

1958

66 and viii months

1959

66 and 10 months

1960 or afterwards

67

Data source: Social Security Assistants.

Once you reach FRA, you lot don't have to worry about income from a job impacting your benefits. You lot can earn as much as yous'd like without having whatever of your Social Security income withheld. Information technology'southward when yous're working and collecting benefits before FRA that the earnings test comes into play.

In 2022, yous can earn up to $19,560 a year without it impacting your benefits. From in that location, you'll have $1 in Social Security withheld for every $2 you earn.

Withheld benefits won't be lost forever -- they'll be added dorsum into your paychecks once y'all reach FRA. Merely remember, claiming Social Security early on will outcome in a permanent benefits reduction. And that may not be worth it to you if yous're just going to have benefits withheld due to your earnings.

Meanwhile, the earnings exam limit in 2022 is much college if you'll exist reaching FRA adjacent year. In that case, you can earn upwardly to $51,960 without any impact to your benefits. From there, y'all'll accept $1 in Social Security withheld for every $3 y'all earn.

Know the limits

If you're retiring from your career before reaching FRA, you lot may be interested in getting a part-time chore to stay decorated or heave your income. And to be clear, there are definite benefits to working during retirement. Just be sure to keep the earnings examination limits in heed before you commit to a specific schedule.

If reducing your hours slightly puts you lot just below the threshold for having benefits withheld, and so forgoing that bit of income could make sense. That said, you may decide you'd rather ramp up your part-fourth dimension work hours and hold off on filing for Social Security altogether. Doing so could effect in a higher monthly do good for life, and so that could exist a smart conclusion you lot stop upward appreciating.