Ask Experts Questions for FREE Help !
Ask
    afaroo's Avatar
    afaroo Posts: 4,006, Reputation: 251
    Ultra Member
     
    #1

    Oct 14, 2009, 10:32 AM
    SS benefits
    My friend is turning in to age 66 next year he is working and wants to continue working, his question is shall he apply for his SS benefits at age 66 or will be better for him until age 70, Thanks.

    John
    ballengerb1's Avatar
    ballengerb1 Posts: 27,378, Reputation: 2280
    Home Repair & Remodeling Expert
     
    #2

    Oct 14, 2009, 10:41 AM

    I think that he reaches his full benefits at 65 years and 10 months but have him try this calculator. Full retirement age
    afaroo's Avatar
    afaroo Posts: 4,006, Reputation: 251
    Ultra Member
     
    #3

    Oct 14, 2009, 11:26 AM

    Hi Bob,

    His question is shall he wait until he reaches age 70 to receive SS benefite or start at age 66, Thanks.

    John
    ballengerb1's Avatar
    ballengerb1 Posts: 27,378, Reputation: 2280
    Home Repair & Remodeling Expert
     
    #4

    Oct 14, 2009, 01:42 PM
    John, your friend can keep working as long as he wants, no limit on what he can earn. Apply for SS benefits as soon as he reaches his full benefit age, think he is already there.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #5

    Oct 16, 2009, 10:45 AM

    There can be a benefit in waiting untul he is 70, as the amount you collect per month will continue to increase the longer he waits to start withdrawing. This is true even if he is already at "full retirement age." It's a bit of a crap shoot though - it pays to wait if you live longer than the average person. Of course you don't know the answer to that question, but the general rule is if you don't need the money now, and are in reasonably good health so that you may live to a ripe old age, then it can be wise to wait.

    One other complication to consider - if your friend's wife has work credits so that she has earned SS retirement benefits on her own, assuming that the amount of these benefits are less than his, it may be smart to start her withdrawals now.

    Here is some information from the SS web site to consider:

    Other things to consider
    afaroo's Avatar
    afaroo Posts: 4,006, Reputation: 251
    Ultra Member
     
    #6

    Oct 16, 2009, 11:34 AM

    Hi All,
    I passed the information to friend he is thankfull, he is going to apply for it next year before hi birth day, Thanks.

    Best Regards,
    John
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
    Uber Member
     
    #7

    Oct 17, 2009, 05:31 PM

    If you decide to retire early at age 62 you will be able to collect your benefits and still work. You will be penalized if you make more than a certain amount each year - but the penalty is very small compared to the money you will collect.

    If your friend wants to start collecting at age 66 then he can work as much as he wants to with NO penalties and no monies deducted from his SSR monthly checks.

    I retired early. Why forgo the thousands of dollars just to work a few more years for about $100 a month more in SSR monthly benefits. Makes no sense to not start collecting early. In some states you can even collect unemployment benefits AND social security benefits at the same time.
    ballengerb1's Avatar
    ballengerb1 Posts: 27,378, Reputation: 2280
    Home Repair & Remodeling Expert
     
    #8

    Oct 18, 2009, 06:23 PM

    Not positive but I think the penalty, if you take the early 62 retirement, is $1 for every $2 you earn if you keep working. Hopefullly John's friend has read the thread I gave in post #2
    afaroo's Avatar
    afaroo Posts: 4,006, Reputation: 251
    Ultra Member
     
    #9

    Oct 18, 2009, 06:26 PM

    Hello Bob,

    Yes I passed all the information to my friend and he thanked you for the great info, Thanks.

    Best Regards,
    John
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
    Uber Member
     
    #10

    Oct 18, 2009, 06:41 PM
    Quote Originally Posted by ballengerb1 View Post
    Not positive but I think the penalty, if you take the early 62 retirement, is $1 for every $2 you earn if you keep working. Hopefullly John's friend has read the thread I gave in post #2
    The "penalty" kicks in only after you make so much money a year. The part about the $1 for every $2 is incorrect. This penalty only applies on the money earned after a certain threashold has been exceeded ($13,560 a year) .

    For instance if you had a part time job and only made $200 a week gross and collected say $1,000 a month SSR benefits, your SSR benefit would not be touched or penalized at all. But say you made $500 a week and collected $1,000 SR check, then that would make a huge difference in what you were entitled to receive from SSR.

    Bottom line... you can still work and still collect SSR without being penalized. And even if you are penalized, you still will be taking home more money in the end per month - maybe even several hundred dollars more. So why would anyone want to wait to collect SSR is beyond me. Are you willing to throw all that extra money away each month? Also, on the amount of money you are penalized - when you do stop working your SSR check will be revised and recalculated and will result in it being higher due to working longer.
    afaroo's Avatar
    afaroo Posts: 4,006, Reputation: 251
    Ultra Member
     
    #11

    Oct 18, 2009, 08:11 PM

    Hello all,

    My friend is making some where between $75,000 to $80,000 a year do you guys still recommend that he should apply for SS when he reaches 66 next year, Thanks.

    John

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

SSI Benefits [ 1 Answers ]

If the seniors on SSI moves from one state to another, will the benefit amount adjust according to the cost of living in the new area or state?

Why don't we get benefits [ 6 Answers ]

I work for a food company that also owns a golf course. The golf course employees are hired and paid by the food company. We have there insurance, and there holiday. There stock is private, and only can be bought by employees, which we can buy. The food company has a 401-k plan, and they get stock...

What are benefits? [ 6 Answers ]

Are there any community benefits that come out of forensic science?:confused:


View more questions Search