How much am I allowed to earn in retirement?

[dave123]

I'm retired Federal Law Enforcement and receiving a pension. I know that I start losing money from my pension if I make over a certain amount each year. I don't want to go over the allowable limit before I start losing money off my pension.

I've been unable to find the amount allowable for 2022.

Any help appreciated.

dave

 

[mcash]

Looks like the Social Security Earnings Test limit for 2022 is $19,560. If you are receiving the FERS supplement it will be reduced if your earnings exceed that amount.

 

[dave123]

Thank you very much!

If you have a link, I would appreciate you sharing. There are some other things I wonder.

 

[DreamboatAnnie]

Investopedia has very good current information.
Here is link:

https://www.investopedia.com/articles/personal-finance/120715/how-does-my-parttime-job-affect-social-security.asp

 

[Boghie]

I don't think your Federal pension will be reduced. I don't think it is earnings tested.

Social Security does have some clawbacks, but that is not your pension. Those clawbacks to your Social Security benefit occur if you are not at your full retirement age, are collecting Social Security, and exceed the $19K (or a higher limit in the year of full retirement age, but before your birthday). Personally, why worry. Homey don't play that game. Don't let 'The Man' drive your life. The clawback is nasty, but is a percentage of the amount over the gubmint politician defined 'limit'.

For questions such as these I would initiate a relationship with a good financial advisor/planner. Such a person can help you in many, many ways. It is well worth the cost. It is NOT just investment planning, it is things like your question, insurance needs, expenditure planning, health care planning, etc.. Again, well worth the cost.

 

[evilanne]

I'm retired Federal Law Enforcement and receiving a pension. I know that I start losing money from my pension if I make over a certain amount each year. I don't want to go over the allowable limit before I start losing money off my pension.

I've been unable to find the amount allowable for 2022.

Any help appreciated.

dave

Looks like the Social Security Earnings Test limit for 2022 is $19,560. If you are receiving the FERS supplement it will be reduced if your earnings exceed that amount.

Thank you very much!

If you have a link, I would appreciate you sharing. There are some other things I wonder.

Since you are a LEO, you may want to invest in a copy of the FERSGUIDE for Special Category Employees (SCEs) see https://fersguide.com/
I'm not sure if you have a different threshold or any threshold per this article https://www.psretirement.com/leo-fers-supplement/ but this article doesn't make sense since the supplement ends when you turn 62. Looking at an older version of the FERSguide, I believe you don't have a limit until you reach your MRA. According to https://new.narfe.org/wp-content/uploads/2020/12/Webinar_06132019-pdf.pdf slide 18 on RAS, you are "Not subject to an annual earnings limit until you reach your regular FERS minimum retirement age" although I think LEOs do get COLAs due to mandatory retirement age. Depending on when your birthday & MRA (if different) is, you only need to report the earnings from that date until the end of the year. So if your Birthday/MRA is October 1st of next year, you would only report wages & self employment income for those 3 months and they would be subject to the same social security limit as mcash stated. Here is the official SSA update https://www.ssa.gov/news/press/factsheets/colafacts2022.pdf. If you are talking about the supplement, the only difference is that they reduce it by $1 for every $2 you earn (rather than $3 for SSA). I really recommend the FERSGuide...it spells out everything very clearly.

 

[dave123]

Yes, evilanne, I'm talking about the supplement. No reason to come to work for 1/2 or less what I'm getting. I'm 58 and retired mandatory at 57, so I don't believe that this affects my social security as I'm not getting anything.

I do have the FERS Guide, but since the number changes every year, and I couldn't find the number, I came here for help from the experts.

Off to check the links.

thanx to all who helped.