Today we were talking about drawing SS and continuing to work. The discussion really centered on starting to draw at 62 and still work for some number of years. I didn't have time to research it at work and now that I have I'm more confused. So, for those that know......numbers strictly for easy math ..... person will be earning $6K per month..... person is eligible for $1500 per month if they don't work. How much does the $6K cut into the $1500 until the person reaches full retirement age? Will they be ale to draw at all, before full retirement, while making $50K per year? The $1 penalty for every $2 made is what I'm talking about.

Derek, you watching this place tonight?

I’ll chime back in...

This is news to me, I thought there was a limit to how much you work as in part-time (maybe an hour per week cap) to draw full

All the gory details are here: SSA: How Work Affects Your Benefits

Here’s the AlDeer short story: The annual earnings limit in 2019 is $17,640. For every $2 you earn over the limit, your SS benefit is reduced by $1. If a person is making $6K per month, that’s $72K per year (not $50K). So, here’s how the math works:

Step 1: $72K - $17,640 = $54,360.
Step 2: $54,360 / 2 = $27,180.
Step 3: Assuming that Wiley meant the person could receive $1,500 per month from SS, you then divide $27,180 by $1,500. So, $27,180 / $1,500 = 18.12.

That means you would have to withhold 18.12 monthly checks in 2019 before the person could be paid... but there’s only 12 months in the year, thus only 12 possible payments... so this person (in this scenario) would be in total withholding if they filed for early retirement benefits. In other words, it is pointless to file because their annual earnings are too high.

Also, remember that if you file early, it is a permanent reduction in benefits. I always told folks that if you don’t have any income and need the money now, then file early. If you’ve got a good paying job and don’t need the money to live, then wait. Especially if you reasonably expect to live any amount of time after your full retirement age.

Most of us have a full retirement age of around 67, and the break even period (if I remember correctly) was around 8 +- years after a person hits their full retirement age. So at age 67, if you expect to live another eight years or longer, then wait until then to file. If you’re age 62 and got a foot in the grave (and your not working and earning too much), age 67 file now and get all you can while you’re still alive to enjoy it. You can also delay your retirement after your full retirement age, but that’s risky.... it’s a big gamble that you’ll live long enough to make that pay off.

And don’t forget that you still need to file for Medicare at age 65, even if you plan to wait until sometime after age 65 to file for your monthly retirement benefits.

Disclaimer: God paroled me out of the Social Security Administration in July 2009, so it’s been a while since I’ve been there, and I’m sure things have changed. Do your homework before you decide to file.

Hope that helps!

This may be what you're looking for, or not.

First, it depends on when you take them. Remember that although your full retirement age might be 67, you can start receiving benefits at 62, even if you're still working. But there's a catch: If you elect to receive benefits prior to full retirement age, you can only earn up to $17,640 (the limit for 2019).

Here’s one for the experts. I’m 51 and have a 3 year old daughter. When do I draw? Don’t factor income.

You need to go see a doc and have him draw a tight string around your tubes...

Glad you were able to get out. I've got a little over 9 years before I'm eligible for parole. If I can get my daughter out of school and pay of some stuff, I may get an early release ... Anyway, you are spot on!

Thanks Derek! My math of 6x12 = 50 surely skewed the equation

As a youngster by ALDeer standards, I’ve written off getting anything from Social Security by the time I hit retirement. Seems like there is zero benefit to drawing early unless you literally cannot work. After reading Wiley’s post it appears that even after you reach the magic age of 67 you’ll only pull in 18K a year from social security, is that a correct assumption?

I have seven years to go until 62 . I will take SS at 62. I will have that and my pension from the State of Florida. I see no need to wait until full retirement age of 67. That's five years of checks that I would never get back.

Planning on SS is a losing proposition. Plan without it, IMO.

What a chit show!

Same thing I said. Before it was pulled.

If you die early; yes. If not; the checks when you start will be significantly larger

You're Social Security "Benefit" is based on your earnings over 35 years. For every year less than the 35 that you did not work a 0 gets put in the equation. So everyone's "Benefit" different, but there is a maximum. For instance if you've been pulling down a 6 figure income you will receive over $40k a year in Social Security benefits.

You can go here and easily put in a few bits of information and find out how much you are going to get:

https://www.ssa.gov/benefits/retirement/estimator.html

One's SSA benefit will increase 8% for every year you delay till full benefit age; so it's a dice roll based on need

I'm 50 and have 3 grandkids. I love them dearly, and I love to send them home with their parents too! 😉

I am 6 from 62 and similarly situated. But my pension will continue to increase until 67 and that plus 5 more years of this income + about 20% will make a big difference. But if I croak getting mad at liberal posts on here and pop a vein in my forehead it won’t much matter.

When I recently did the math, the break even point was around 79 years old. If you expect to live longer than 79, wait till 67 to file if you are able. If you don’t think you will live past 79, file at 62. That was co firmed in a recent retirement seminar I attended.

I didn't expect to make 50!
What should I do?