Social Security Question
Hello Terry, I will be at full retirement age (66) this month. I do not plan on working longer than one more year. I received a letter from Social Security stating that I can take my full benefit at FRA and keep working without a reduction in benefits. Is this true? I always believed that there would be a penalty if income is over a set amount monthly. I realize that I will lose the 8% per year increase, but as I said I don’t plan on working more than one more year at most. Thanks for all you do.
Terry Says
It’s true! Once you reach Full Retirement Age, there is no longer an earnings penalty. Thebenefits you receive are taxed along with your ordinary income, and that might put you in a higher tx bracket. But that’s ok; at least you’re making money!
So do keep on working, and you can also keep on savings in your company plan! Remember, the longer you work at this end of retirement, the more you will enjoy the later years!
