Posted by The harder you work, the more you lose in your pension?This kind of thing that sounds counterintuitive, I am afraid that only those who have retired in the United States will face it.Regarding the question of how much pension will be lost while receiving social security pension while continuing to make money,Few people can figure it out.American Life Insurance Guide©️ insurGuru™️Retirement column, Will help us understand this today"I have to lose my pension because I go to work"The problem, and how to avoid this problem from a regulatory perspective.
Who may lose their pension?
in factLess pensionProblems, mainly for thoseNot yet reach the age of full retirement.Start receiving social security pensions, while still continuing to work and earn money.
For every extra $2 earned, $1 lost
According to the current system, if we start receiving government pensions in 2019, but have not yet reached the legal age for "full" retirement, then the government will draw a standard income line.If our income in 2019 exceeds this income standard line, then for every two yuan we make, the government will deduct one yuan from the pension.
In 2019, this income standard line is $17,640, and by 2020, it will increase to $18,240.
In other words, if we are receiving retirement wages,Earn while working$3, Then our incomeExceeded the income standard line of $12,360, Then we nextDivide the lost $12,360 by 2, for a total of $6,180Pension.
For every extra $3 earned, $1 lost
For groups born between 1943 and 1964, when we reach the age at which we can “completely” retire, the standard line of income after retirement will be higher for us.
If we are just 2019 years old in 66 and start to receive the government's social security pension, then this income level is $46,920.If our income after retirement exceeds this number, for every 3 yuan we earn after retirement, the social security pension will be reduced by 1 yuan.
In 2020, the new income limit line is$ 48,600.
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If you have not reached official retirement age, $2 will be deducted from your benefits for every $1 above the limit.
• In 2022, income limit is $19,560
• In 2023, income limit is $21,240
If you reach official retirement age, $3 will be deducted from your benefits for every $1 above the limit.
• In 2022, income limit is $51,960
• In 2023, income limit is $56,520
The game between government interests and individual rights
We not only have to ask, if you retire and stop working, such a low standard is not enough to live.Even if we continue to work and earn money after retirement, it seems very unfair to have to pay the cost of losing our pension.Originally, not many social security pensions were received. The government also used various systems to increase the number of years of work. Those who want to rest early, let alone take advantage of them, can they not be countered by the U.S. government. It's time to thank God.
Could it be that we have fallen into a well-designed retirement system trap?
There is no simple answer to this question.
Therefore, we need to prepare for retirement in advance, plan and set up retirement cash flow products that will not affect this part of income.
In other words, if you use it to doLife insurance policy account for retirement planning, Even if we pay us $1,000, $10,000 every month, or even withdraw one million dollars a month, it will not reduce the government pension we receive.
Article Summary: Work Smart Rather Than Work Hard
From the retirement pension discount system introduced in the column, we can see that under the existing retirement system in the United States, we must understand some basics.Retirement knowledge and corresponding financial management knowledgeKnowledge, make long-term planning ahead of time, and gradually accumulate in the direction of this big goal.
This is not to say that we are going to memorize more than 2000 system provisions on social security retirement, and everyone must become an expert.However, by understanding the common sense of the advantages and disadvantages of the existing retirement system, when we are faced with these choices, we can immediately understand which professional services to seek, and rationally use the power given to us by the system to play games with the government to maximize Self-interest.
This is exactlyAmerican Life Insurance Guide©️Always advocated LBYB principle.A common saying in the United States is "Work Smart Rather Than Work Hard".To a certain extent, the key to a successful retirement is indeed not hard work, but smart study planning and work. (End of full text)
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