Dear Rusty: I’m just trying to figure out how to determine whether to retire at 65 or 67 and, if I retire, approximately how much could I make outside of my Social Security without being overly taxed.
Thank you in advance for your service as a Social Security Advisor. Signed: Thinking About Retiring
Dear Thinking: Deciding when to retire is serious business, because it affects your future and what your retirement income will be going forward. Thus, it’s good you are taking the time to fully understand your options, and we’re happy to assist you with that. Here are some things which should help you decide whether to retire at 65 or 67:
If your plan is to continue to work full time, be aware that if you claim early SS and significantly exceed the annual earnings limit, you may even be temporarily ineligible to collect SS benefits. If your work income is high enough that the penalty for exceeding the earnings limit is more than SS can recover through withheld benefits in one year, they will tell you that you’re unable to collect benefits at this time (until you either earn less or reach your FRA).
So, deciding whether to claim Social Security at 65 or 67 is your personal choice and, hopefully, the above provides the information you need to make an informed decision.
Thank you for submitting your question to our Social Security Advisor department. Be sure to share our link with your family and friends.
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at [email protected].
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