Does the Social Security $12,960 limit on retiring at 62 apply to OID (ordinary interest and dividends)?

Social Security website states the following:





Pension payments, annuities, and the interest or dividends from your savings and investments are not earnings for Social Security purposes. Only your earned income--that is, your wages or net income from self-employment--is covered by Social Security.





You may have to pay income tax on pensions, annuities, interest or dividends, but you do not pay Social Security taxes on those types of income and they are not on your Social Security record.

Does the Social Security $12,960 limit on retiring at 62 apply to OID (ordinary interest and dividends)?
No it does not apply. You can make millions in interest and dividends and still collect your full social security. (As a side lite, those millions will be taxable, of course, and will make your social security 85% taxable.) The original idea back in the 1930's was to take social security recipients out of the workforce to open up a job for someone else; so only wages count against you. BTW, once you hit 'normal retirement age', there is no penalty for wages, either; normal could be between 65 and 67, depending on your year of birth.
Reply:I'm not sure what your question is. The rules--which you did quote correctly--are clear that OID isn't included.
Reply:The limit applies to earned income only. Interest and pensions do not count.