One decision many older Americans struggle with is when to file for Social Security. If you lot claim benefits likewise early on, you might reduce them on a permanent footing. Only if you expect likewise long to sign upwards for benefits, you lot'll risk getting less coin in your lifetime if you wind up passing away at a immature age.

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

Each year, Social Security imposes what'southward known equally an earnings examination for workers who earn money from a job simply also collect benefits. Income that exceeds the earnings test limit could issue in withheld benefits, and then information technology's important to know what those thresholds wait like. Here's what seniors need to know for 2022.

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What are the 2022 earnings test limits?

Before we dive into next yr's earnings test limits, permit's practise a refresher on the rules for claiming Social Security. The earliest age to sign up for Social Security is 62. Only you're not entitled to your full monthly benefit -- the ane that'south calculated based on your earnings history -- until you reach full retirement age, or FRA.

FRA depends on your year of birth. You tin can consult this tabular array to run across what yours looks like:

If Your Year of Nascence Is

Your Full Retirement Age Is

1943-1954

66

1955

66 and 2 months

1956

66 and 4 months

1957

66 and 6 months

1958

66 and 8 months

1959

66 and x months

1960 or later on

67

Data source: Social Security Administration.

Once you attain FRA, you don't have to worry virtually income from a chore impacting your benefits. Yous can earn as much as y'all'd like without having whatsoever of your Social Security income withheld. It'southward when you're working and collecting benefits earlier FRA that the earnings examination comes into play.

In 2022, you can earn up to $19,560 a yr without it impacting your benefits. From there, you'll accept $ane in Social Security withheld for every $2 yous earn.

Withheld benefits won't be lost forever -- they'll be added back into your paychecks in one case you attain FRA. But recollect, claiming Social Security early will result in a permanent benefits reduction. And that may not be worth it to y'all if you're simply going to have benefits withheld due to your earnings.

Meanwhile, the earnings test limit in 2022 is much college if y'all'll be reaching FRA next yr. In that instance, you can earn upward to $51,960 without any affect to your benefits. From there, y'all'll take $i in Social Security withheld for every $three y'all earn.

Know the limits

If you're retiring from your career earlier reaching FRA, you may be interested in getting a function-time job to stay busy or boost your income. And to exist clear, in that location are definite benefits to working during retirement. Just exist sure to keep the earnings test limits in mind before you commit to a specific schedule.

If reducing your hours slightly puts you only below the threshold for having benefits withheld, then forgoing that scrap of income could make sense. That said, you may determine you'd rather ramp upwards your part-time work hours and hold off on filing for Social Security altogether. Doing so could result in a higher monthly benefit for life, then that could be a smart decision yous end upward appreciating.