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Collecting Ss At Full Retirement Age While Continuing To Work

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ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Received a SS bulletin describing the wherewithal of an individual who has reached his or her "full retirement age," based on date of birth, to collect full SS benefits (minus 8% a year each year leading up to the 70th birthdate) while still working full time and making as much as you can (subject to tax brackets), and with the monthly benefits possibly increasing as well if your final years of employment are more financially rewarding than your younger years, which typically is the scenario.

I called SS to advise of the error in the bulletin, although the phone rep confirmed the bulletin and offered to sign me up on the spot!

I'm skeptical that starting in 48 hours I can collect an additional $25K a year--gross/net because it's not taxed--although I didn't realize it until now.

Please help me better to understand--also to understand how I got so old so quickly.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
We got the letter saying that we (we are 68 -drawing max) we can work as much as we want and not have the SS reduced. Used to, if you made over, I think, $20K, you could be hit with a 50% hit on SS for every $1 made. Not any more. Yes, you get the SS tax free with no work penalty.
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
If you take SS early, 62, then for the years between 62 and 66 (+/-) your SS benefits are reduced by $1 for every $2 you earn.

After full retirement age, 66 +/-, you can earn as much as you want with no penalty. I can collect early SS later this year and have been looking pretty hard at the numbers.

Also been wondering about that old-so-quickly question.

edit: forgot to mention that the reduction starts once you hit about $15,500 income level.
 
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ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Yes, I am aware of the slope between 62 and the "full retirement age," and although I'm unaware of the slope, I do know that the annual increase for delaying the funds increases by 8% a year between full retirement age and 70, but no subsequent increases forthcoming, although than CPI increases. SS income at full retirement age might expose an individual to a higher tax bracket. The basic SSI formula based on three sectors of the highest 35 years of wages, with a different %age factor applied to each, is complex, as is the fact that the extra income will be taxed at a higher rate than if the decision was delayed until after work is in the past. Of course it's all based on actuarial tables and the uncertain future. Two very nice folks I work with in my "real job" are real close to death by natural causes, one who is 45 and another who is 52; and another guy done met his untimely, natural end at 42, all in the last two weeks. A recent SS bulletin described the average life expectancy of individuals who are meeting their full retirement age this year--something like 50% will live to be 90 or more, 30% will live to be 95% or more, etc.--pretty surprising numbers. Weird thing is the impact aging has on financial/material "expectations," e.g., hopes for a Maserati, even 10 - 15 years old, dims considerably when the likelihood of tangible future increases in income decline. Me, I'll probably be working on my resume when I'm 125 years old.
 
D

Deleted member 128537

Guest
To me the question is, "What can I do besides appraisals that is more fulfilling, but not financially rewarded?" I can think of a ton of things. I get full retirement at 66 and 2 months. I'm going to take SS at 65 and 2 mos. I get Medicare at 65, so my insurance costs go down, and I have enough saving to retire. The difference will be minimal. As someone that had prostate cancer one realizes that we are indeed a mist as the Psalmist says. So I'd rather have a year to do something that I find more fulfilling but no financial gain.
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
I say: Take the money and run.
One of my neighbors (about 74) died a week ago, stroked while loading something into his truck.
You never know in advance when your time has run out. I started taking SS when I was 62.
When I ran the numbers for my dad -many years ago- found that if he started at age 62,
he *began* to come out behind (vs. age 65 total $$ collected) at around age 83 or 84.
You sure you're going to live into your mid-80's? I hope so, but, who knows.


/
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I dont like that continuing to work part. :sick:
 
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