You are free to continue working after you begin collecting Social Security, but there are limits on the amount you can earn before you reach full retirement age. For example, in 2008 you can earn up to $13,560 if you’re between 62 and 64, and up to $36,120 during the year you reach full retirment age, and still receive your full benefit. But if you earn more, your benefit is reduced. Through age 64, you lose $1 for every $2 over the limit. And the year you’re 65, you lose $1 for every $3 over the limit.
The prospect of a reduced benefit may make you rethink continuing to work. Or it may make you decide to wait to apply for Social Security benefits until you’re really retired or until you reach full retirement age, when there’s no cap on the amount you can earn and still receive your full benefit.
Remember, too, that as long as you’re working, you’ll contribute to Social Security. And the more you contribute, the more you’ll be eligible to collect. That might also affect your retirement decision.
Other resources
You can find more information on the Social Security Web site, www.ssa.gov, by visiting your local Social Security office, or by talking to your financial adviser.
