Home › Forums › Decaffeinated Coffee › Socia Security for Dummies- can I collect and be employed full time?
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November 8, 2011 5:06 pm at 5:06 pm #600413AZOI.ISParticipant
My salary is close to 100, and relatives making similar say you can continue to work f/t and collect soc sec once you reach the age (62 or 65, depending on whether you want to collect more or less, from then on). Is that true?
Please confirm.
November 8, 2011 9:40 pm at 9:40 pm #825163AZOI.ISParticipantAnyone?
(BTW, those who have my job, working for private firms, at my age, are making double and more).
November 8, 2011 10:42 pm at 10:42 pm #825164YW Moderator-72Participantwhy not go to http://www.ssa.gov/ and either research it or ask the experts there. asking here will give you as many different answers as there are posters.
November 8, 2011 10:50 pm at 10:50 pm #825165oomisParticipantMy husband was just forced to take early social security (forced due to our financial circumstances), at age 63. If you file at age 66 (I don’t think it is 65 any more, but I could be mistaken), you can earn as much as you want without losing benefits.
If however, you take EARLY ss, that is a whole other ball of wax. You cannot earn more than (I believe) $14,650 for each calendar year. If you do, they will deduct $1 for every $2 that you earn above that allowed amount, as was explained to us. So if you earn 10K above $14,650, they will hold back checks equalling 5K, until the next January. This can result in you actually not receiving a number of ss checks, until the amount that they are deducting has been met. Unless you are earning a REALLY large amount of money, it is not probably not worth it, and you should wait until regular retirement to collect, because you can earn whatever you want then, with no restriction. You also earn less with early social than if you waited. OTOH, you could collect for several years before age 66, so it’s up to you. If we didn’t have to do it, my husband would not have applied so early, most likely.
November 8, 2011 11:02 pm at 11:02 pm #825166artchillParticipantIf you are at retirement age making the amount you are speaking of. Whatever your retirement benefit you are entitled to will be reduced by $1 for every $3 earned until you stop working. Plus you will pay almost 40% taxes on the benefit.
If you are earlier than maximum retirement age, then whatever your benefits are supposed to be will be reduced by $1 for every $2 eraned. Plus you will pay a whopping 85% tax on the benefits.
Enjoy retirement if you can afford it!
November 8, 2011 11:27 pm at 11:27 pm #825167AZOI.ISParticipantYW Moderator-72, thanks, but I want to hear others’ experiences, with starting to receive benefits early, versus waiting, etc.
I like the advice given here. Lots of sensible people here.
With a salary close to 100, and not wanting to retire early, might there be any advantages of taking Soc Sec early?
November 9, 2011 10:32 pm at 10:32 pm #8251682scentsParticipantany CPA’s in the house?
no need to excuse yourself for making more than 100K, no need to be ashamed of that.
November 9, 2011 11:37 pm at 11:37 pm #825169YW Moderator-72Participantyou asked a true/false question. not an open ended “what is your opinion of…” question
I hope you got or will get the advice that you are seeking
November 9, 2011 11:56 pm at 11:56 pm #825170AZOI.ISParticipantSo with continuing to work f/t with a salary similar to mine, Im told by most that there isnt any advantage to applying for benefits before 65. Although I know people who have similar salaries, are working f/t and ARE getting benefits before 65. Im getting conflicting opinions.
November 10, 2011 12:52 am at 12:52 am #825171farrockgrandmaParticipantMany of the finance websites, like smartmoney have social security calculators. The Wall Street Journal also has some good advice. Basically, if you live to a ripe old age you would do better collecting at age 70. (maximum benefits and no earnings deduction)
Any earnings, even after retirement, will increase the benefit you are eligible for. If your spouse also works, there are ways to use both benefits to your best advantage.
November 10, 2011 2:03 am at 2:03 am #825173hadassaParticipantoomis1105 is basically correct. Once you reach 65 or 66 or 66+
(depending upon when you were born. they keep raising the age)
you can collect your full social security and earn whatever you like. If you choose to wait to collect and only start collecting
at age 70, your benefit will be still more (about 8%) for each year you wait.
You are not taxed at the rate of 85%, as artchill wrote. You may be taxed on 85% of your social security benefits (at whatever your tax rate is)depending upon your total other income
(salary, interest, dividends, capital gains, etc.)and 1/2 your social security…..It has nothing to do whether you take early
retirement/ your age, etc. The tax rate on which you pay is the same as what you pay on all your other income….
Whether it is smart to collect early depends on your life span.
If you know someone with Ruach Hakodesh, you can calculate the best option, so as to maximize your benefits.
November 10, 2011 2:06 am at 2:06 am #825174hadassaParticipantForgot to say that you can go to SSA.GOV and play with their worksheets, inputting all kinds of scenarios. For example, since
s.s. looks to your 40 highest years, you might want to work and wait with collecting to bring your average up, especially if you haven’t worked 40 years.
November 10, 2011 2:52 am at 2:52 am #825175anon for thisParticipanthadassa, I think you mean 40 highest quarters, not 40 highest years.
November 10, 2011 3:33 am at 3:33 am #825176hadassaParticipantno. i mean 40 highest years! 40 quarters is the minimum to qualify for s.s. 40 years are the look-back years to compute earnings.
November 10, 2011 4:52 am at 4:52 am #825177AZOI.ISParticipantI spoke to someone who told me everyone in his shul (all very high earners) started to collect soc sec at the first possible chance, while still working f/t, a couple of years before age 65. I dont see the chochma in that. What would be the gain in that case (unless they think they’ll die young)?
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