Social security
If I start collecting when I am 68, yet keep working and contributing to SS until I am 70, will my payment increase. If I work longer will it increase more or stop at 70.
Terry Says
Social Security calculates your average indexed monthly earnings during the 35 years in which you earned the most. So to the extent your later years — until age 70 — are much higher earnings than those from 35 years earlier, those additional high-paying years will add to your base rate, calculated at age 70. Beyond age 70, even if you continue to work and pay into SS, it will not impact your monthly check. Only an inflation adjustment will add to your check after age 70.
Bottom line: DO NOT start collecting before age 70 if you can possibly hold out. Those extra two years will earn you an 8% increase PER YEAR in your base benefit at age 70!!!
