Q & A

If My Income Is $40,000 Per Year, Can I Still Receive A Retirement Benefit At 62?

 Full Question: Can a person be working full time, making about $40,000 per year and still start receiving Social Security benefits at age 62? I know there will be a reduction in the monthly benefit from what it would be if one was not working. In other words, not receiving the 80 percent (not waiting until full retirement at age 66 in order to receive the full 100 percent) of the benefit due to working full time according to the Social Security Administration’s Q&As.

Answer:  A current 62-year-old earning $40,000 would lose 50 cents on the dollar in benefits for every dollar earned, about $15,480. So you could lose the bulk of your retirement benefit. This loss in benefits would be restored to you at full retirement age via the adjustment of the reduction factor or AFR, which would permanently increase your retirement benefit based on the months of benefits you lost due to the earnings test. Read more…

SourceLaurence Kotlikoff, Forbes Contributor

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