#4 Add high earnings to claiming early and you got yourself another cut
If you do not want to be on the list of people who lose out on part of their Social Security benefits, then you have to make sure that you keep an eye on your income and when you end up taking out the payments. After all, for some people, it is not a problem if they end up receiving a little bit less since they do not have the full retirement age. However, if you decide to claim early in order to have a little bit more income, you need to make sure how much you earn does not exceed a limit, or you will end up receiving fewer benefits.
If you still earn an income, then you will lose part of your money, and the check you will receive will be even less than you expected. It has been established that for this year, you can have a yearly income of up to $21,240 and you will not see any reductions, but if you earn more than that, the SSA will start withholding some money from your check.
The rule is that they will hold back $1 from the benefits for every $2 earned over the threshold. If you end up reaching full retirement age the year that you end up receiving payments, then the threshold moves to a yearly income of $56,520. And the reduction will be changed to $1 withheld for every $3 earned!