Concerns about early retirement and Social Security

You might want to think about the consequences of retiring before you are eligible for full social security benefits especially if you are unemployed and over fifty. Retiring early will cost you some serious money.

In order to receive full benefits for the SSA you have to be 67 years old unless you turn 62 this year then full retirement is 66. Of course you can receive benefits when you reach the age of 62 but only at a partial level. If you do retire earlier than 67 you will permanently lose 25 % of your monthly payments. That is quite a bit of money!

What if you go back to work after receiving social security benefits?

If you have been receiving benefits and you decide to go back to work your current benefits will be reduced. By how much depends upon the Retirement earnings test. The retirement earnings test is tied to an earnings threshold that the government sets. In 2009 the threshold was 14,160$. For every two dollars that you earned about that, the government will withhold one dollar of benefits. Earning over 42 grand and you wouldn’t receive any benefits.

But unlike the penalties for retiring early the money that you lose because of the retirement earnings test will be eventually made up when you reach full retirement age.

For further information, go to the Social Security Website.
http://www.socialsecurity.gov/

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