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Kenneth's questions

by Kenneth
(Upper Marlboro, MD)

If I retire at age 65, how much money can I earn and not be penalized.


For instance, if I get a job earning 30,000.00 during ages 65 and 66, what is my penalty...

Wendy Nothing with Social Security has an easy answer. Thus, my answer here will assume you were born between 1943 - 1954.. if this isn't true, comment below and I will revise the reply, ok?

Folks in this age group have a "full retirement age" of age 66. After age 66, you are free to earn without any Social Security reduction penalty.

While you are under the "full retirement age", the earnings limit is $14,160. All earnings after that limit, goes like this:

-- For every $2 earned over the limit, $1 is withheld from your SS benefits (I guess that means you lose one half of your benefit after you earn the first $14,160).

However, like I said, nothing is easy. IF you are within the year you turned 66, the "full retirement age", then this applies:

-- In this specific year, you can earn up to $37,680... so it sounds like your $30,000 job would work out nicely. However, just so you are aware, for every $3 over the $37.680 limit, $1 is withheld from benefits until the month you reach full retirement age.

Hope this helps.. wonder how much of this is true after all the Federal Budget issues are resolved.



Comments for Kenneth's questions

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Delay SS
by: Anonymous

Think about delaying SS until 66 if you can.
Don't worry about the SS you will lose, you will lose more by not working. The good news is what you lose in SS is added back when your benefit at 66 is figured. By the way the deduction for the over payment comes in the following year. Keep that in mind if cash flow is a problem

Retirement.
by: Antoinette.

A lot depends on your individual circumstances. Every country has different rules.

n Canada you can legally retire at age 56. You can work part time all you want and also have some time to smell the roses. The deduction on your age 65 security pension is only 1%. You hardly notice the deduction at age 65 but life can be very short and sometimes a little more leisure time and time to enjoy some good hobbys can be very precious.


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