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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 10098
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I am going to turn 62 in January of 2017. Please, tell me

Customer Question

I am going to turn 62 in January of 2017. Please, tell me how it works.
JA: The Retirement Accountant will know how to help. Please tell me more, so we can help you best.
Customer: Can I start collecting social security benefits at age 62 and continue working?
JA: These retirement benefits are supposed to help us but they can be so complicated! The Retirement Expert will help you get the most benefits propertly. Is there anything else important you think the Retirement Accountant should know?
Customer: The only other thing is if I will get penalized and how much if I start collecting social security at 62 and continue working.
Submitted: 3 months ago.
Category: Social Security
Expert:  Lane replied 3 months ago.

Hi. My name's Lane. I can help you here.

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Yes, although as it looks like you know, Social Security penalizes you in more than one way by taking early.

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(1) The age 62 benefit is 25% less than the full retirement age benefit (age 66)for those Born Between 1943 And 1954.

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(you get an additional 8% delayed retirement credit for every year you wait AFTER age 66, up to age 70 - making your age 70 benefit, if you wait, 132% of your full retirement age. age 66, benefit,)

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(2) You social security benefits are reduced again (only for those yearws between 62 and 66 - this stops once you reach full retirement age). Until you reach full retirement age, Social Security will subtract money from your retirement check if you exceed a certain amount of earned income for the year. For the year 2016, this limit on earned income is $15,720 ($1,310 per month)

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If you are collecting Social Security retirement benefits before full retirement age, your benefits are reduced by $1 for every $2 you earn over that limit. Once you reach full retirement age, there is no limit on the amount of money you may earn and still receive your full Social Security retirement benefit.

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Finally, although you'll never get back the 25% lost by retiring at 62, the amounts of early retirement benefits you lose as a setoff against your earnings are not necessarily gone forever.

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When you reach full retirement age, Social Security will recalculate upward the amount of your benefits to take into account the amounts you lost because of the earned income rule.

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(the lost amounts will be made up only partially, however, a little bit each year. It will take up to 15 years to completely recoup your lost benefits).

Expert:  Lane replied 3 months ago.

Please let me know if you have any questions at all, before you rate me.

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

I know it takes an extra step, but JustAnswer won’t credit us for the work until you rate.

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Thank you!

Lane

I have a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice on three continents, since 1986.

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