Earnings Test

The earnings test was devised by the United States Social Security Administration to limit the earnings for workers 62 to 65 that will determine the amount of Social Security benefits received


The test only applies to people who are below the Normal Retirement Age, which ranges from 65 to 67 years old, depending on the person's year of birth. A person earning over the lower limit bracket but less than the upper limit bracket loses $1 in benefits for every $2 in wages, while a person earning over the upper limit bracket loses $1 in benefits for every $3 in wages. [cite web| url=http://www.ssa.gov/OACT/COLA/rtea.html| title=Retirement Earnings Test| date=October 18 2006| accessdate=2007-03-08| publisher=Social Security Administration] A person is not eligible if he is at the retirement age, is under the Normal Retirement Age but has disability payments, or is living outside of the United States and their work is not covered by Social Security. [cite web| url=http://www.ssa.gov/OP_Home/handbook/handbook.18/handbook-1801.html| title=Social Security Handbook| date=September 27 2005| accessdate=2007-03-08| publisher=Social Security Administration]

Earnings Test Table

The following table determines what bracket people under the Normal Retirement Age fall under spanning several years.


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