When applying for DISABILITY benefits, you agree to report income from work or self-employment and/or a medical improvement in your condition. Your friend may not have fully understood this when he first applied. However, since your friend is over age 62, he MAY be eligible for RETIREMENT (not Disability) benefits. These benefits would be reduced for age since your friend is younger than full retirement age. Have him ask Social Security for more information. If he is indeed overpaid, he has several options- pay back the full amount in one lump sum, spread out the debt by monthly refunds, or file for Reconsideration or Waiver. "Reconsideration" means he disagrees with the facts of the overpayment. If he wants to have the overpayment waived (forgiven), he will have to prove that 1. he did not cause the overpayment AND 2. that it will cause him financial hardship to pay it back. Again, contact Social Security. Visit your local office in person or call 1-800-772-1213 for information and/or an appointment.

That's exactly what I thought, kudzu. You refuse to accept the math simply because you don't trust the government. That's fine if it makes you feel good because, you think, you've managed to outsmart those sneaky old federal bureaucrats. I sincerely hope you're enjoying your retirement and the SS checks you've been receiving for these past years . What bothers me is that you're misleading others with bad advice about something that's very important for their futures. For example, you claim that the math is so complicated that neither you nor I can figure it out and that the breakeven point may somehow really be later than 78 because of "the time value of money" -- the fact that a dollar today is worth more than a dollar some years down the road. That's certainly true but a deferred SS benefit grows at the guaranteed rate of 7% interest each year for four years -- the rate is 8% for those who hold off four more years until they're 70 -- PLUS whatever rate the COLA is for that year. COLAS have averaged 2.5% for the last 10 years, BTW. Since the deferred benefits is larger each year, the COLA on the growing benefit will also be larger than the COLA for the static early benefit. Considering that, the real breakeven point is probably somewhat less than 78 years not more. The real truth is that the government knows that, no matter what it tells people about waiting to take SS, most (about two-thirds) will take it as soon as they can. Many of them have no choice because they truly need the money. Others may have serious medical problems that are likely to shorten their lives. But many just can't wait to finally get something back from SS after paying in for so many years. Or they're afraid SS will run out of money. Or, like you, they refuse to believe that the government's advice to wait could possibly be true. Of course, each one of the 66% who start taking at 62 costs the government less in lifetime benefits than any and all of those who hold off. The relatively few who hold off until 66 will cost it more and the even fewer (like me) who hold off until 70 will cost it the most. That's why the breakeven point can be set at a lower age than actual life expectancy. The majority who take early collectively create a large enough surplus to fund those of us who hold off taking until later. So I thank you for the contribution, however tiny, you will likely make to help fund the later stages of my retirement.

Your SS benefits are not based on the last year you worked. It looks at your highest paid 35 years over your entire working career. It goes something like this: The calculation will be made over 35 years which is 420 months. First, your record is searched for 35 highest paid years. If you do have that many, then there will be some years counted as zero years. Next, the older years are indexed to sort of bring them up to todays dollars. The factors used is something like a cost-of-living adjustment, but in my humble opinion, the adjustment falls short of the actual inflation rate. However, the same index is applied to everybody be they rich or poor. For example, if you earned $100 30 years ago, the adjustment factor might be 4.5, so your $100 income made 30 years ago would be adjusted to 4.5 x 100 or $450 in current dollars. This is done for each year using a different factor for each year. If there are zero years, these are included also. The 35 highest paid years are used or all the years if there is less than 35. All of the adjusted years are totaled and then divided by 420, the number of months in 35 years. This becomes the average monthly income figure that is used to determine your benefit. Clear as mud? I hope it is a little better than that. Go to the social security site to find this information. The indexing list should be there and it may change some for each passing year. The formula for using the average indexed monthly taxed earnings for computing the benefit should be there.

Go see your Social Security Office. You'll should call and make and appointment first. As other posters have said, the rules are many. If you have also worked and paid social security taxes, that will be considered. Basically, the amount you might get is computed in several ways and then the maximum benefit one is used. The various cases may be (1) your wages and lifetime contribution alone, ( 2) 50% of your spouce's amount, or (3) if disabled, the disabled amount. If you were born after a certain date, the full retirement age is increased above 65. At one time, the full retirement age was to increase in steps from 65 to 67. I have been retired long enough to have lost track of the current rules. If you are elgible at age 65 for full retirement, you can take early retirement (as early as 62) with a reduction in payments. The reduction is based on the average life expectancy. When I retired, life expectancy was age 77, e.g., half of your population group will have expired by age 77. The reduction works out to be 5/9 percent per month early, thus if you retire 3 years early, the reduction is (36 months x .05)/9 or 0.20 which is 20%. Is this bad? It depends on how long you will live. If you do not expect to live beyond 77, then early retirement is not a loss. You loose only if you live beyond 77. Here's why. If you retired at the normal age of 65, then the time span to 77 is 12 years; if retired at age 62, the time span to 77 is 15 years. Check it out. You'll find that the total money paid out over the longer time is exactly the same as that of the shorter span. For example, suppose the normal payout was $100 per month. The amount for 12 years is 12 x 12 x 100 = 14,400. Now suppose that you retired 3 years early. The payout is $80 per month. The amount for 15 years is 15 x 12 x 80 = 14,400. After age 77, the early payout plan is less than the other and the difference increases each year. Since I retired, life expectancy may have increased to 78 years. These calculations give amounts based on the current value of the dollar. As time goes by, there are COLA increases that will increase the payout to offset inflation to some degree. In my experience, the SS cost increase numbers do not fully cover the real inflation of the basics.