There are several issues...
If you start collecting social security benefits NOW while you are below the full retirement age - your earning will be limited.
So - if you are still working and have substantial wages - it might be better to delay your social security benefits at least till you reach the full retirement age.
If you are under full retirement age for the entire year, the SSA deducts $1 from your benefit payments for every $2 you earn above the annual limit.For 2015 that limit is $15,720.For 2016 that limit is not yet set. Most likely - it will be a little higher.
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.
In additional - your social security benefits might be partly taxable.
A simple test is as following- take a half of social security benefits
- PLUS other taxable income
- if the total is less than $25000 (for singles) or $32,000 (for married couples filing
jointly) - none of social security benefits would be taxable.
- if the total is more than the threshold - we would need to use a special worksheet to determine the taxable portion.
You may however delay social security benefits till age 70 - and that will allow larger benefits.
The issue is - if you have large taxable income - that MIGHT trigger a part of your social security benefits to be taxable.
So that choice would allow not only increase your social security benefits - but reduce (or avoid) your benefits from being taxed - for instance if you choose to to have all other pension
benefits to be distributed before you start social security benefits.
How your benefits might be increase?
If your full retirement age is 66 -
and you start receiving retirement benefits at age 67, you'll get 108% of the monthly benefit because you delayed getting benefits for 12 months.
If you start receiving retirement benefits at age 70, you'll get 132% of the monthly benefit because you delayed getting benefits for 48 months.
When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits.
Regardless of your election - you still need to sign for Medicate when you turn 65.
Let me know if you need any help.