Social Security Figures Rising

The annual earnings test threshold applying to Social Security beneficiaries aged 62 through "full retirement age"—in 2014, remaining 66–is increasing in January from $15,120 to $15,480. Those beneficiaries lose $1 in Social Security benefits for every $2 in earnings through employment or self-employment above the limit. A separate earnings test applies only to earnings for months in the year an individual reaches full retirement age prior to the individual attaining that age. One dollar in benefits will be withheld for every $3 in earnings above $41,400, up from $40,080. There is no limit on earnings beginning the month an individual attains full retirement age. Meanwhile, the "substantial earnings" needed under the windfall elimination provision is rising from $21,075 to $21,750. That offset mainly applies to CSRS-covered persons who qualify for a Social Security benefit due to outside earnings covered by that system; the offset is phased out if Social Security-covered earnings are above the annual threshold for at least 20 years and eliminated above 30 years.