Tuesday, January 18, 2011

Does Working Affect Your Social Security Retirement Benefits?

Blog posting provided by Michael Snowdon, CFP


Today, an increasing number of people's retirement plans include continuing to work and filing to receive Social Security benefits at the same time. They need the additional income, and every dollar counts.

The good news is, you can get Social Security retirement benefits and work at the same time. In fact, if you are at full retirement age or older and still working, you get to keep all your Social Security benefits, no matter how much you earn. (If you were born January 2, 1943, through January 1, 1955, then your full retirement age is 66.)

However, if you are younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits. If you are younger than full retirement age during all of 2011, $1 will be deducted from your benefits for each $2 you earn above $14,160.
If you reach full retirement age during 2011, your benefits will be reduced $1 for each $3 you earn above $37, 680 until the month you actually reach full retirement age.

If you work for someone else, only your wages count toward Social Security's earnings limits. If you are self-employed, your net earnings from self-employment are what counts. Income such as other government benefits, investment earnings, interest, pensions, annuities and capital gains is not counted.

There are other guidelines that can have an impact. If you would like to learn more, check out the Social Security website at www.socialsecurity.gov/pubs/10069.html.

Michael Snowdon, CFP, President
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