Certified Senior Advisor (CSA) Practice Test

When a retired worker under the Social Security Administration's rules earns income from a job while receiving Social Security benefits, there is a specific earnings limit that, when exceeded, can lead to a reduction in benefits. This is known as the "earnings test."

For individuals who reach full retirement age, this earnings limit does not apply, and their benefits remain unaffected regardless of their earnings. However, if the individual is below full retirement age, for every $2 earned above a certain threshold, $1 is deducted from their Social Security benefits.

In this scenario, if Pierre takes a full-time job at an annual salary of $35,000, and if we assume he is below the full retirement age, we need to consider how his earnings compare to the defined thresholds for that year. If his earnings surpass the threshold, it would trigger a reduction in his benefits.

The figure mentioned, a reduction of $11,500, reflects a calculation based on the excess of Pierre's earnings above the limit and how that translates into benefits lost. This means that after totaling all deductions based on his salary exceeding the allowable limit, the resulting reduction would be that amount.

Thus, if Pierre is working and earning that salary while below full retirement age, the significant reduction