The “Consultant” Trap: Self-Employment, Hours Worked, and the Earnings Test
Confused by Social Security?
Retiring to become a consultant? Social Security looks at Hours Worked, not just income.
The “Substantial Services” Rule
If you work more than 45 hours a month (or 15 hours in skilled trades), benefits may be withheld—even if you show no net profit.
Transitioning to consulting?
Let’s check if your filing date puts your benefits at risk.
Best Strategy
Wait until Full Retirement Age to file if you plan to consult.
About Author
Ray R. Harris
Ray R. Harris, RSSA®, partners with tax and legal professionals to provide specialized Social Security claiming analysis for high-net-worth clients aged 58–70. A former executive with an MBA and background in Finance, Ray mitigates liability for his partners by ensuring their clients optimize spousal benefits, tax efficiency, and lifetime income.
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