How Earned Income affects Lockheed Martin Employees' & Retirees' Social Security Benefits

How Earned Income Affects Lockheed Martin Employees’ & Retirees’ Social Security Benefits

Are you still working and ready to start your Social Security benefits? Do you know if and how your Social Security benefits may be affected by your earned income? If you find yourself in this situation, then this is the blog for you.  Today we will be discussing how your Social Security benefits could be affected if you continue to earn income while in retirement.  

Social Security imposes what’s known as an earnings test for workers who continue to have earned income while also collecting benefits. Income that exceeds the earnings test limit could result in withheld benefits, so it’s important to know the thresholds. 

  1. First and foremost, you need to know your full retirement age (FRA) as defined by the Social Security Administration (SSA).  
If Your Year of Birth Is Your Full Retirement Age Is
1943-1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 or later 67


If you have already reached your FRA, then you don’t have to worry about any earned income impacting your benefits. You can earn as much as you’d like without having any of your Social Security benefits withheld. The earning test is applied if you are collecting benefits before reaching your FRA. 

In 2022, if you are under full retirement age for the entire year, $1 will be deducted from your benefit payments for every $2 you earn above $19,560. 

If you reach your FRA in 2022, then $1 will be deducted for every $3 you earn above $50,520. The SSA only counts your earnings up to the month before you reach your full retirement age, not your earnings for the entire year. In addition, the SSA will recalculate your benefit amount to give you credit for the months they reduced or withheld benefits due to your excess earnings. Remember, beginning with the month you reach FRA, your earnings no longer reduce your benefits, no matter how much you earn.

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!


Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

This blog is being provided and sponsored by Strittmatter Wealth Management Group, LLC. Lockheed Martin and its subsidiaries do not endorse, recommend, or make representations with respect to any information, advice, services, or products discussed in this blog. 

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.

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