I have a social security question.?

Question

I am starting all over at age fifty five, lost everything to divorce, so will attempt to work until I am seventy. I have a nice full time job, and was told by some I can indeed collect the lower SS amount at 62. Others say I can only earn $1200, if I start collecting social security, and must retire any way in order to collect. Which way is it, and why?

Answer 1

You can "retire" early, but your benefits are reduced. Each year it climbs until your full benefits take effect. Following is a SSA excerpt covering how much you can earn:

"If you are under normal (or full) retirement age (FRA): when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2007 that limit is $12,960 and for 2006, that limit is $12,480. Remember, the earliest age that you can receive Social Security retirement benefits remains 62 even though the FRA is rising.

In the year you reach your FRA: $1 in benefits will be deducted for each $3 you earn above a different limit, but only counting earnings before the month you reach FRA. For 2007, this limit is $34,440; for 2006, this limit is $33,240

Starting with the month you reach FRA:, you will get your benefits with NO limit on your earnings."

Lots of information available at the government's site: www.ssa.gov/
(some sites look like they are official so be sure you are at the one above).

One other note, Medicare does not take effect at any time until FRA is attained.
Good Luck.

Answer 2

Social Security retirement benefits are set up so that, if you have an average life expectancy, you shouldn't get more whether you start early taking reduced benefits or wait as long as possible before collecting benefits (which will increase if you delay). If you're earning a good salary, you might as well delay taking the benefits as long as possible to build up the amount you receive. At age 55, you won't have much time to save up a large retirement portfolio (unless you make a very large income and live frugally). Even though you should try to save as much as you can, maximizing your Social Security benefits would make your retirement more comfortable.

Starting to collect benefits early while still working means you not only get reduced benefits but are also penalized additional amounts for your earned income. So you could be worse off, on a lifetime basis, if you start benefits early. Your benefits won't be penalized if you keep working after your full retirement age (66 in your case), but they will always continue at a reduced level if you started taking them early.

On the other hand, the benefits will be quite a bit larger if you wait until you're 70 to start collecting. If you think you'll live longer than average, waiting until 70 would probably make sense.

If, however, your health situation isn't so good and you think your life expectancy is probably less than average, you might want to start collecting benefits sooner rather than later.

The webpage below gives you more detail about when to start collecting Social Security.

Answer 3

You can collect at 62, but it will be a reduced amount, then if you continue to work and make over the limit, they'll reduce it further to the point where if you're making a good salary, you'd end up with little or nothing from ss.

See ssa.gov for details

Answer 4

Between 62 and 65, you can earn $1200 a month without affecting your SS payments. After that, for every $2 you earn, they reduce your SS payment by $1.

After age 65, you can earn as much as you want, and it won't affect your SS payment.

Answer 5

When I retire at 66 which is my FRA I was born in 1951 and I get $1100.00 from Social Security but my X husband gets $2000.00 Social Security and we were married 31 years and I am not remarried. Do I get another $900.00 from his Social Security?

Answer 6

I am retiring at 62 but will continue to work part time as not to exceed the 15720 annual SS earned income limit. However, there may be several months out of the year that I exceed 1310 but other months that I bring home less than 1310 but at the end of the year I do not exceed the 15720. For the months that I exceed 1310 does SS reduce my next monthly SS check or do they wait to the end of the year and make deductions out of my monthly benefits the following year. Confused as to when deductions are made.