Any United States worker who begins collecting Social Security retirement benefits can return to his or her former status. Retirement is not an obligation, but a right. There are many U.S. citizens who choose to return to work after retirement. There are many different reasons for this. Some of them do it for financial reasons, but others do it for purely personal reasons.
The truth is that everyone can go back to work and pause Social Security retirement. But before doing so, we must take into account several very important aspects that directly affect the beneficiary of the benefit.
It is not possible to leave retirement and start collecting money as a worker without a penalty. Well, only in one situation is this possible: after reaching Full Retirement Age. But until then, all workers who have started collecting retirement and work after that, will have a penalty. This Social Security penalty will depend on the beneficiary’s personal situation. But this is not the only thing we must take into account if we want to return to work after retirement.
Not notifying the Social Security Administration is a big mistake
There is no bigger mistake in this area than starting to work after applying for retirement and not notifying Social Security. If you do not notify the SSA, the SSA will not have the information from the beginning of your work, which will mean a fine in the future when the Administration discovers the situation. Sooner or later the SSA will become aware of the change in your work life and will take the necessary action.
In addition to the fine, the SSA can stop your retirement payments indefinitely. It all depends on the situation, but it will be a very unpleasant surprise for you in the future, that’s for sure. Therefore, notifying the Social Security Administration is the first thing we need to do as soon as we think we want to work. Any change in life should be reported to the SSA, not just a return to work.
Calculate your income well
If you have applied for retirement before your Full Retirement Age you will have to pay a penalty when you stop. Although you may be able to get future Social Security payments to see a big increase. It all depends on the benefits you had before applying for the pause and the salary you earn during the months you are working. What is certain is that the first few months you will have a penalty and will not be able to collect retirement, as CNBC notes.
Having a high income for more months will increase your retirement considerably. Although sometimes it is not worth it and it is better to stay with the current income and look for other alternatives to stretch your benefit. One such alternative is to move out of state to pay less taxes. You can also look for different income options without the need to work.