Can anyone point out a downside to collecting Social Security while still working? I will be 65 in December and will only be working (20) hours a week starting in January. Money is not a problem since retirement is well taken care of. SS increases about 8% a year and it seems that I would be ahead of the game to start drawing it at 65. Comments?

 

consult someone that can clearly lay out the advantages and disadvantages of doing such.... do you have 401K? Pension? the order in which you take your money will determine your tax rates.

 

I don't have a comment, but I admire your situation good problem to have, especially if you like your job

 

The downside to taking SS earlier is that you would get smaller monthly payments, compared to getting larger payments by waiting (max @ age 70, IIRC).

Absent health conditions or a lower life expectancy, if there's no need for the payments now, defer until monthly payments max out. Don't go nuts.

 

Smaller payments yes, every year you get about an extra $140 a month. If I take it now I will get about $22,536 a year. I seems like it is a better deal to take it now as it would take a long time to break even by waiting.

 

Of course the answer always depends on when will you die! Absent knowing that, if you expect a long life (i.e. no health problems), waiting not only gives you a larger overall payout over your lifetime but it also increase your spouse's survivorship benefits since these are based on what you benefit amount was.

 

Dan if your full retirement age is 66 I think you will have to pay some percentage of any income you make until you reach your FRA. But, I think whatever you paid extra in, you will get back when you do reach FRA.
It is best to get valid info from the SS site, as I am not sure myself

I also think after you reach FRA, you can make as much as you like

 

Interestingly I happen to see this on MSN.COM today in an article about changes to Social Security in 2016. Most of the changes had to do with there not being a COLA next year:
"The Social Security earnings limit for people who work and claim Social Security payments at the same time will remain $15,720 in 2016 for people ages 65 and younger. Social Security beneficiaries who earn more than this amount will have $1 in benefits temporarily withheld for every $2 in earnings above the limit. For people who will turn 66 in 2016, the earnings limit climbs to $41,880, and the reduction in payments for earning too much declines to $1 withheld for every $3 in excess earnings. Once a retiree turns 66 in 2016, the earnings limit no longer applies and benefit payments are recalculated to factor in withheld payments and continued earnings."

 

Additionally, any amount withheld due to "over-earning" is put back into the pot for you to collect when you no longer "over-earn."

 

It's a done deal. 65 in Dec and Starting SS Jan 2016 and going to make less than 41K next year. Going to still get my 160 hours of paid vacation, 9 paid holidays and a big enough raise to pay my Medicare B, D & F. Life is good.

 

. . . and a 19 hour work week!

 

congrats!!!

 

That's nuts! Congrats!

 

Spent the afternoon with some Knob Creek doing a inventory of 40+ years of machinists tools to sell them. This stuff has gotten expensive since I purchased them! $89 tool box is now $395, $150 Etalon micrometer is now $395. Glad I am going out and not just starting out. Probably going to ask for $0.40 on the dollar and take $0.30.