If your client has not yet reached their full retirement age and is employed or self-employed, any earnings over the earning limit will significantly reduce their Social Security benefit. For 2023, this reduction is $1 for every $2 of earned income over the limit of $21,240. In the year they reach their full retirement age, the limit increases to $56,520, with a benefit reduction of $1 for every $3 of earned income above this threshold. There are no earnings limits once they have reached their full retirement age. 
3. Employment Status
If your client is working and their earned income exceeds these limits, it makes sense for them to wait to claim their benefits until they reach their full retirement age at 66 and a few months up to age 67 for those born in 1960 or later. While any benefits that are reduced will be received once they attain their full retirement age, it generally makes sense just to wait in this situation.
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Thirty-four percent of retirement savers worldwide and 37% in the United States expect to work at least part time after they retire, according to a study released Monday by T. Rowe Price.
The global research also found economic and financial uncertainty among savers:
● 50% expect a recession by mid-2026.
● Inflation is a top concern, as are geopolitical events and interest rates.
● Only 27% are confident that they could withstand a financial shock while retired.
● 17% believe they will run out of money in retirement.
The study is based on a survey conducted during the summer among 7,030 employed adults in the United States, Australia, Canada, Japan and the United Kingdom, including 3,001 Americans. The respondents either actively contribute to or are eligible to do so to a defined contribution or similar account-based workplace retirement plan.
Survey Findings
The highest level of economic pessimism in Japan and Canada, the survey found, where 62% and 56% of respondents said they foresee a recession. In contrast, less than half of savers in the United States, Australia and the U.K. are bracing for a near-term recession.
Retirement optimism is low across the globe. Only 31% of respondents said they expect to live as well or better in retirement, with pessimism most pronounced in Japan and Australia, and least in the U.K.
Women, especially those who are single, reported significantly lower retirement confidence than men. This was most notable in Australia, where 31% of men, but only 15% of women, reported high confidence.
A third of global retirement savers purported to be excited about retirement. This optimism, the survey found, correlates with stronger financial footing: Excited savers are more likely to be higher earners and married, and twice as likely to report progress toward their financial goals.
T. Rowe Price’s study showed that three of the four most relied-upon sources of advice for global savers are connected to the workplace, with the highest reliance reported in the United States:
● Company that manages workplace retirement plan(s) — 25%
● Website/materials by workplace retirement plan administration — 22%
● Tools/calculators/education via workplace retirement — 22%
Japanese respondents, in contrast, were likelier than those in other regions to self-direct.
Meanwhile, human advisors remain essential, according to the survey, tied at 25% with the retirement plan recordkeeper as the most relied-upon source of advice worldwide.
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