by Donald Whelpley
@ 2022 All rights reserved.
Supplemental Reading
Years of reading articles on retirement plus eight years of looking through the government’s Social Security website…and just this month I found something SPECIAL that everyone should know.
It has to do with continuing to work WHEN you apply for Social Security benefits.
APPLYING AT 62.
Don’t. If you, or your spouse who will depend on those resources, lives beyond 77 you will LOSE MONEY.
If you plan to continue to work after starting to receive benefits, you should know that you will be limited to about $20,000 in wages before you will be penalized (you lose $1 in benefits for every $2 you earn beyond that).
APPLYING AT FRA (Full Retirement Age).
Excellent. If you, or your spouse, live beyond age 77 you will get a heap more money than those who started benefits at age 62.
Plus, if you are continuing to work after FRA you can earn almost as much as you want without benefit penalty.
**APPLYING FOR BENEFITS IN THE YEAR YOU REACH FRA**
This is what I did not know and no retirement article mentioned.
This can be exciting for those still working in the year they reach FRA. Instead of being restricted to ~$20,000 in wages, you can earn over $51,000 in wages without penalty. And the penalty is $1 loss for every $3 earned beyond the $51,000.
Honestly, very few will be able to take advantage of this GIFT. However, I have met several who WOULD have done this HAD THEY KNOWN.
So, you get your Social Security benefits AND an income. You can pay off your house, put more away, or go on a long vacation with the extra money.
In my case, my FRA comes due in December, so I am applying for benefits to start in January. I am going to work for a few months just because I want a few toys that are not in the budget. I have always been very careful, and have spent little on ME. The budget will not be impacted at all, and I will get that pricey guitar I’ve been eyeing. (No! The guitar does not cost $51,000…)
See Part 1 of A Layman’s Look from Don: Streams of Retirement Income
See Part 2 of A Layman’s Look from Don: Streams of Retirement Income
See Part 3 of A Layman’s Look from Don: Streams of Retirement Income
See Part 4 of A Layman’s Look from Don: Streams of Retirement Income
See Part 5 of A Layman’s Look from Don: Streams of Retirement Income
See Part 6 of A Layman’s Look from Don: Streams of Retirement Income
See Part 7 of A Layman’s Look from Don: Streams of Retirement Income
See Part 8 of A Layman’s Look from Don: Streams of Retirement Income
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