I'm turning 62 this June, 2012. I've been working full-time, but am thinking about going to part-time, mainly so that I can still have health insurance benefits through my employer. What concerns me is, how will that affect Social Security? I don't need or want to start receiving SS benefits this year, but if my salary is basicly cut in half by going part-time, will that decrease future benefits by lowering my yearly income for 2-3 years?
I haven't really asked anyone that knows the official position thus far, just friends who have given me different opinions on possible effects in the future.
Good afternoon,I'm sorry to hear of the situation.Your benefits are determined based on the highest 35 years of employment earnings. The fact that you have a few years of decreased salary before you retire and start social security will not make a significant difference in your benefit amount. Your postponing benefits until you reach full retirement age increases the final benefit by a percentage each month after age 62 that you postpone---and between 62 and 66, that increase amounts to 25% higher benefits than if you took early retirement. This is much more significant that a couple of years of part time employment in the overall schemes of things.I hope you found my answer informative.I wish you the best in 2012.Doug
Doug, just wanted to check the number "35" in your answer. That seems like a longer period than many folks actually work. So, for my circumstance, you're saying thatworking for a lower salary until I'm ready for Medicare coverage (65) shouldn't make any difference in my SS benefits? Susan
Susan, I did not say it made NO difference, I said it will not make a significant difference. And yes, 35 is the correct number of years. 35 working after reaching 18, is only 53 years old---and most folks do work beyond age 53. Take a look at the complex calculations here:
You can even take MediCare at 65 and delay retirement for another 5 years for an even bigger benefit.
For every year you delay past full retirement age--66---you earn an extra 8% increase in your monthly benefit.
I have more than 28 years of litigation experience, including representing clients before the U.S. Social Security Administration