5. How to Live on Social Security Alone: Get Ready for Temporary Withholding of Social Security Payments if You Work
Working part-time is a pretty common way to help pay for retirement. It may also be the answer to how to live on Social Security alone. Working while collecting Social Security benefits doesn’t pose any problems for those age 66 or older in 2023.
Nonetheless, if you earn an income while receiving Social Security before age 66, a portion or all of your retirement payments could be temporarily withheld if you make more than $21,240 in 2023. (If you’ll turn 66 in 2023, there’s a higher earnings limit of $56,520, and a smaller amount is withheld.)
However, once you’re 66, your monthly benefit is recalculated to give you credit for the continued earnings and withheld benefit, so chances are you’ll enjoy higher Social Security payments. If your 35 years of earnings haven’t already reached their maximum level, then your benefit will be higher if you work longer.
So, if you’re looking for ideas for how to live on Social Security alone, you may want to consider getting a side job.
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