Final answer:
Individuals at age 64 can earn up to a certain limit without reducing their Social Security benefit, and this limit is adjusted annually by the SSA. Full retirement age has increased from 65 to 67 for those born in 1960 or later, affecting earnings limits. It's important to check with the SSA for the current year's earnings limit.
Step-by-step explanation:
The amount that an individual can earn from employment at age 64 without reducing their Social Security benefit varies from year to year and is determined by the Social Security Administration (SSA). For individuals who have not yet reached full retirement age (FRA), there is an earnings limit beyond which Social Security benefits are reduced. In the years leading up to full retirement age, an individual can earn up to a certain threshold without a reduction in benefits; earnings above that threshold may cause benefits to be reduced. It is important to note that the SSA adjusts these limits annually for inflation.
The concept of the retirement age and earnings limit is closely related to policy changes and demographic shifts. According to the Social Security Administration, the full retirement age was 65 but has been increased gradually; it will reach 67 for those born in 1960 or later. This means that the earnings limit is mostly relevant for those below their respective full retirement age, which depends on the year of birth. Enacted changes, such as the one in 1983 that gradually increased the full retirement age, are examples of how policymakers address financial pressures on the Social Security system.
To learn the exact earnings limit for the current year, individuals should check with the SSA or consult their official website. Earnings limits can change annually, and therefore staying informed about these changes is of high importance, especially for those who expect to continue working while beginning to draw Social Security benefits.