Good morning Larry,
I am reading your book Get What's Yours and have got through about 40% (right past Chapter 8).
I will be 62 next year (Jan 18). My spouse of 40+ years will be 66 next March 25.
Could you please explain what the maximum annual earnings limit would be if I were to retire
at 62 (next January) and my wife at her FRA (also later next year) as well as (more specifically) whether the maximum annual earnings limit is the total of PIA AND any amounts earned aside from PIA or does the PIA not count as part of the maximum annual earnings limit.
I have not been able to find a straightforward answer or number so far (hope further reading of your book will help but I am not there yet - jumping the gun, as it were).
Thank you in advance.
Mike

Hi Mike. First off, make sure that you're reading the revised edition of Larry's book, since it addresses the 2015 Social Security amendments. The annual earnings test exempt amount for you in 2022 would be $19,560, and for your wife it would be $51,960. And, in your wife's case only her earnings in the months prior to the month she attains full retirement age (FRA) would count. If you earn more than $19,560 next year, Social Security would need to withhold $1 of the benefits payable on your account for every $2 that you exceed the limit. Therefore, the maximum you could earn and still be able to collect some benefits would depend on your benefit amount.

Countable earnings consist of a person's wages and/or net self-employment earnings. No other income counts, including your Social Security benefits themselves.

One other thing that people sometimes get confused about is how the earnings test applies to spousal benefits. Spousal benefits can be withheld if the spouse themselves earn more than the applicable exempt amount, or if the worker on whose record the spousal benefits are paid earns more than the exempt amount. For example, if you earn more than $19,560 next year and if your wife is eligible for spousal benefits on your account then her spousal benefits would be subject to withholding due to the earnings test (https://www.ssa.gov/benefits/retirement/planner/whileworking.html).

You and your wife may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry