Hello all
I am looking at collecting social security at 62 and continuing working (leaving a salaried job and focusing on what is now a part-time self-employment situation).
For every two dollars earned above a certain amount ($14,100 in 2011) social security is reduced by one dollar.
The social security web site says that your benefits upon reaching full retirement age will be increased to account for those months when SS is reduced.
Does anyone know of a way to estimate how much will be restored? From the SS website, it almost seems that if I lose 10% of my benefit over those years, I would get 10% of the original reduction restored.
In the example, if you retire at 62 and have retirement benefits of $750, then lose 12 months of benefits due to earnings penalty, your benefits upon reaching 66 would be increased $800 because of the benefits lost.
With the same benefits ($750) if you lose all 4 years due to earnings penalty, your benefits at 66 would be restored to $1000.
Since early benefits are roughly 75% of full benefits, the second example looks like a 100% restoration.
On the other hand, if the beneficiary in the first instance gets 25% restored, it would seem the income would be $812.50, not an even $800.
Any guidance on the computation of the amount to be restored would be appreciated.
Thanks
I am looking at collecting social security at 62 and continuing working (leaving a salaried job and focusing on what is now a part-time self-employment situation).
For every two dollars earned above a certain amount ($14,100 in 2011) social security is reduced by one dollar.
The social security web site says that your benefits upon reaching full retirement age will be increased to account for those months when SS is reduced.
Does anyone know of a way to estimate how much will be restored? From the SS website, it almost seems that if I lose 10% of my benefit over those years, I would get 10% of the original reduction restored.
In the example, if you retire at 62 and have retirement benefits of $750, then lose 12 months of benefits due to earnings penalty, your benefits upon reaching 66 would be increased $800 because of the benefits lost.
With the same benefits ($750) if you lose all 4 years due to earnings penalty, your benefits at 66 would be restored to $1000.
Since early benefits are roughly 75% of full benefits, the second example looks like a 100% restoration.
On the other hand, if the beneficiary in the first instance gets 25% restored, it would seem the income would be $812.50, not an even $800.
Any guidance on the computation of the amount to be restored would be appreciated.
Thanks
