Who would be subjected to excess earnings loss of benefits?

The correct answer is based on the concept of excess earnings when it comes to Social Security benefits for individuals who have not yet reached full retirement age. In this context, Joe, who is 62 years old and currently receiving Social Security while working part-time, would be subject to a reduction in his benefits if his earnings exceed a specific threshold set by the Social Security Administration.

When individuals receive Social Security benefits before reaching full retirement age, there are limits on how much they can earn without affecting their benefits. If their earnings surpass this threshold, their benefits may be reduced dollar-for-dollar above that limit. This is designed to provide assistance while encouraging gradual re-entry into the workforce, but it does mean that working too much can lead to a loss of benefits.

In contrast, individuals like Mary, who has not reached age 65, and Linda, who works full-time and receives Social Security, would also potentially face issues with excess earnings but the focus here is specifically on someone already receiving benefits and actively working. Paul, at age 67, has retired and stopped working, meaning he is not subject to excess earnings rules since he is no longer earning income that would affect his benefit. Thus, Joe fits the profile of someone who could experience a deduction in his