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On 23 Mar 2005 17:48:21 -0800, wrote:
Only problem is that you can't *work* if you start drawing benefits at
62, right? Don't they deduct $1 of Social Security for every dollar you
earn unless you're at the full retirement age of 66? (I think mine will
be 67...)
I think it's foolish to draw at 62 unless you are sure you're done
working. If you're lucky enough to love your job, you might not be
eager to sit down while still relatively young.
62 is now *much younger* than it used to be. When I was a kid, I
thought people were really old at 62. Now that I'm getting pretty old
myself, I think 62 year olds are still kids. :-)
Here's the real skinny:
# If you are under full retirement age (FRA): when you start getting your Social
Security payments, $1 in benefits will be deducted for each $2 you earn above
the annual limit. For 2005 that limit is $12,000 and for 2004, that limit is
$11,640. Remember, the earliest age that you can receive Social Security
retirement benefits remains 62 even though the FRA is rising.
# In the year you reach your FRA: $1 in benefits will be deducted for each $3
you earn above a different limit, but only counting earnings before the month
you reach FRA. For 2005, this limit is $31,800; for 2004, this limit is $31,080
# Starting with the month you reach FRA:, you will get your benefits with NO
limit on your earnings.
--
John H
"All decisions are the result of binary thinking."
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