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Jonathan Tierney
Jonathan Tierney, Certified Public Accountant
Category: Social Security
Satisfied Customers: 322
Experience:  Tax Accountant at Praxair, Inc.
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I just received my first social security check. I am plan

Customer Question

I just received my first social security check. I am plan to work until I'm 70 but intend to save the monthly checks for a nest egg, as all was lost in the recession.
Will my benefits increase because I'm still working?
If not, shouldn't social security and medicare deductions stop from my paycheck?
Thanks for your help.
Submitted: 1 year ago.
Category: Social Security
Expert:  Jonathan Tierney replied 1 year ago.
Hi, my name is ***** ***** I can help. How old are you now? If you have started collecting before your full retirement age, your benefits will be adjusted once you reach full retirement age to give you extra credit for your earnings received while collecting Social Security. Once you reach full retirement age, there is no limit to how much you can earn where your benefits will be reduced because of earnings. However, you no longer earn work credits after your full retirement age and you do still have to pay the Social Security and Medicare taxes if you do choose to work. The only way to increase your monthly Social Security benefit after reaching your full retirement age is by receiving delayed retirement credits by choosing to not collect Social Security. An option that might be good for you since you want the benefits for building a nest egg is to suspend your benefits if you are at your full retirement age. You will earn delayed retirement credits to increase your monthly benefit when you do start to collect. In addition, if reach age 69 and decide you need the extra cash, you can choose to "undo" your benefit suspension and receive in one lump sum all the monthly benefits that your would have received if had not suspended your benefits. However, if make the choose of receiving the lump sum, you will lose any delayed retirement credits you would have earned. I hope this answers your question. Please let me know if I can clarify anything or answer any additional questions.Thanks, Jonathan
Customer: replied 1 year ago.
I turned 66 in March. If I suspend my benefits, I earn delayed retirement credits - is that not like simply waiting to start benefits at age 70? If I suspend until age 69, then I could collect a lump am "nest egg"? Or I can just Cole t it monthly and save it myself, yes?Not really$32 worth of advice but I'm not going to fight you for it.Thank you.
Expert:  Jonathan Tierney replied 1 year ago.
Yes if you choose to suspend your benefits until age 70 you can receive delayed retirement credits and receive a greater benefit but you would not have any money saved up. I mentioned the option to collect a lump sum because you can try to qualify for the greater monthly benefit, but if you later do decide want the money later you can choose to collect benefits from 66-69. The choice is your own and their are tradeoffs in any decision you make. I do not make the law, I simply explain it, blaming me for not liking your choices do not change the law or your situation.