Many of our clients after reviewing the actual costs associated with retirement, are opting to work part-time to supplement their income. Some also miss working and being around co-workers so head in this direction for social reasons. Social Security has changed over the decades. Folks use to decide when they wanted to retire, shook the hands of their co-workers and went their merry way. Not so in 2017. Longer life expectancies and swelling health-care costs have made it more difficult for people to fund retirement, which could feasibly last as long as your working years.
Full retirement age was age 65 when the Social Security program was launched in 1935. In fact, not many people were expected to live long enough to even draw their benefit amount. As more people were retiring and living longer and funds were being drawn from the Trust Fund, the Social Security Administration decided to move the Full Retirement Age from 65 to 66. They also decided that some of these benefits needed to be taxed. Again, the Full Retirement Age has been moved to age 67 and the benefit can be taxes from zero to 85% of your adjusted gross income.
Whatever, your situation, it can be accomplished with a little planning and flexibility. If you decide to file for your benefit prior to Full Retirement Age, and are married, both of you can work but will be limited to earning $16,920 per year (each) without being penalized by the SSA. This number changes to $44,480 (each) the year that you turn Full Retirement Age. Once you turn Full Retirement Age, the earnings limit disappears and any benefits lost to the earnings cap would be restored in the form of larger monthly benefits. But along with this decision, you must realize you are taking a cut in your benefit amount, and decreasing your Survivor Benefit amount.
Maybe if married, one of you wants to draw prior to Full Retirement Age and the other is going to wait on benefits and continue working. This is a viable option as well. With this choice, you need to make sure that you are well-versed in the rules and regulations regarding Social Security as it may benefit you as a couple for the unlikely one to draw, and the other continues to work. The numbers will tell the story.
Call Pillars LLC at 601-954-0699 and Roy and Diane will help you with these decisions and show you how to maximize your benefit and accomplish your personal goals. They are both National Social Security Advisors and Roy is a former CPA of 40+ years. We are in Corinth but service clients in all 50 states.