|
Secure Your Finances
Dear Jeff:
I will turn 62 this Dec.--I am employed full time...made a little over 23K last year. Would it be wise to take my Social Security? Or, am I going to give to much back? I understand I can only make 14K above my Social Security. Thanks for any help. Dick Jeff Says:
Would you believe that I always have to look up the answers to questions pertaining to Social Security? It is like an unsolved mystery to me, although it really is not that complicated. Essentially, Social Security retirement benefits work like this. If you are under age 64 and earn more than $9,120 per year, then your Social Security benefit is reduced by one dollar for every two dollars earned that exceeds the $9,120 figure.
So in your situation, your income of $23,000 exceeds the limit by $13,880. I don't know what your benefit level is, but subtract one-half, or $6,940, from it to see how much Social Security you will actually receive at this time.
Between the ages of 65 and 69, you can earn $19,500 before your benefit is reduced and then, it is only reduced by one dollar for every three that you earn in excess of that amount. For ages 70 and above, there is no reduction in benefit due to earnings.
Taxation of your benefits is another issue to consider. Married couples filing a joint return will pay taxes on 50 percent of their benefit if their combined income is between $32,000 and $44,000. And 85 percent of the benefit is taxed if earnings are above $44,000. Finally, if you elect to receive retirement benefits prior to your normal retirement age, then your benefit is reduced further.
There really is a lot to consider, isn't there?
Share your question with other ThirdAgers, post your message in the Discussions.
Missed a week? Peruse past editions.
More about Jeff Fleming
Please read our disclaimer.
|
