Social Security

CarlettaNovember 29, 2003

I retired (a little early) at the end of 1995. Since that time I've continued to work some each year, some years making several thousand dollars. My Social Security has gone up One Dollar ($1.00) as far as a yearly increase because of additional earnings since that time; of course, I get the usual cost of living raises. When I have called S.S. and asked them why my S.S. has not gone up in light of my constant working, their answer is that they take these earnings and apply to years in the past in which my income was not very much. My next thought is: "Well, if I had not worked at all since I retired, my S.S. would have stayed the same - it wouldn't have gone down, right?" Have any of the rest of you had this or a similar experience? It just seems unfair.

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Are they taking any off your SS because you work? I thought they did. I really have to get more informed about the ins & outs of SS. I just found out I have to work an extra year (until I'm 66) & that blew me away. They give SS to those who have never paid into it but I have to work an extra year after working & paying into it all my life?

    Bookmark   November 30, 2003 at 7:10PM
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If 66 is your normal retirement age, then I don't believe they will penalize you for working. When I retired, the normal retirement age was 65, and I retired at 63. Until I reached 65, I could only make a certain amount but I seem to recall that they made a change in there at some point. The bottom line is that I believe that you won't have to worry about what you make. If you retired at the age of 65, however, I think there would be a set amount you could make and if you went above that, then they would request a small amount back from your SS income - so many dollars for every dollar you made over the permitted amount. Hope this is clear.

    Bookmark   November 30, 2003 at 7:56PM
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I suggest you go to the government's SS page or call your SS office. It pays to get the correct information, not "I think..."

    Bookmark   November 30, 2003 at 8:29PM
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In Canada ...

I can apply to begin to collect on my (contributory) Canada Pension Plan at any time past age 60 - with benefit reduced by 1% for each two months that I apply prior to age 65, or 6% per year, or 30% if I begin to receive just after 60th birthday.

I must claim that I am "substantially retired" on my application.

But - I can go back to work the next day, if I choose.

Should I choose to continue working, and contributing, to the plan past age 65, they add 1% of additional benefit for every two months worked past 65.

Once I begin to collect, no more deductions are taken out of my paycheques earned after that time.

A number of financial advisers recommend that members begin to collect as early as possible after age 60.

If one needs the income, there's little choice.

The person who has a choice is thus able to invest a good portion of the benefit received.

Under usual circumstances, many say that, should the person die prior to around age 80, they were ahead to request initiation of benefits early.

If, however, the earner has studied a number of the parameters of the use of money, thus enabling receiving a better than average rate of return, or developing tax-reduction strategies, thus developing above average rate of after-tax return, it may be possible to push one's break-even point to the high 80's, possibly 90's, or even age 100.

Most of us are dead before that time.

Learning how money works - an interesting hobby. That pays well!

Good wishes to you all.

joyful guy

    Bookmark   December 1, 2003 at 4:34AM
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I turned 65 in August and had to wait until 2 months after to start receiving SS benefits. So far, I have received one SS payment. I am still working my regular job and was given a booklet at the SS office as to how much of my SS would be subject to income tax, 85% of it will be taxable. There isn't a limit on how much you can make working after you reach full retirement age, but you have to pay income tax on a portion of it, depending on how much your total annual income is. I was also told that my SS benefit would be adjusted to include my present contributions but that would take about a year after the fact for the adjustment. I hope my present contributions will be counted in my future benefits.


    Bookmark   December 1, 2003 at 10:54AM
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