Beneficiaries affected by the annual earnings test in 1982

Beneficiaries under age 70 are affected by the earnings test provision of the Social Security Act if their income from employment or self-employment exceeds certain annual exempt amounts. Benefits are withheld at the rate of $1 for every $2 of earnings above the exempt amount. About one million retired-worker beneficiaries lost some or all benefits in 1982. Fewer women than men lost benefits. Lost benefits came to 59% of what would have been paid. About 75% of affected beneficiaries were classified as worker-only beneficiaries, meaning no spouse or child is entitled to benefits on the worker's record. Spouses, children, and survivors may receive benefits if they meet certain requirements. In 1982, some 5% of such dependents or survivors had benefits offset through earnings.