I turned 62 this month, and applied right away for Social Security -- I figure, let's spend their money first, and hang onto my money as much as possible.
Anyway, a job opportunity has come along that looks very appealing -- right up my alley, a startup, exciting, etc. If it actually comes through (it's a startup, so funding is always a question), I will be making enough money that my Social Security income will be cancelled out, probably completely (they reduce your payments by a buck for every $2 you earn over the maximum of, I think, $14,000 a year).
So I talked to the Social Security advisor with my questions:
Q: I may have job starting; if I earn enough, can I turn SS off and then back on?
A: Yes. Just call 800 number for SSN (that I got in my application literature) and tell them you are starting a job that will earn $XX. They'll reduce or discontinue payments -- until you call back when the job is over.
Q: Is there an economic incentive for me to do so?
A: Yes; for each month you don't receive payment, or only get partial payment, you get one month's (or partial month's) credit towards your full retirement date.
For example: I am 62; if I stop it for a year, then restart at 63, I get paid the amount I'd get paid if I were starting at 63. This benefit applies up until my full retirement age (which depends on your birth year; for me it is, I think, 65).
This means if I shut off Social Security for, say, a year, then start it up next year, I'll get a few bucks extra in each month's check, just as if I had first started getting payments later.
This will be true even if, for example, you start getting payments at 62, then two years later turn it off for a while -- your incentive will be slightly higher monthly payments when you turn it back on.
Good thinking, SSA!
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