Life · Chapter 12 · Benefit Calculation
Retirement Earnings Test
Definition
Working while collecting benefits before FRA reduces benefits $1 for every $2 earned over the annual limit. In the year FRA is reached: $1 for every $3 over a higher limit. At or after FRA: no reduction regardless of earnings.
In plain English
Retire 'early' but keep working and Social Security claws some back — until full retirement age, when you can earn anything.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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