A lot of people really enjoy doing what they do and they have every intention of continuing to work after they become eligible to receive Social Security. This can get you to wondering if there are any penalties involved in doing so, and it is indeed a good question.
People who were born between 1943 and 1954 become eligible to receive their full Social Security benefits when they turn 66 years of age. The full retirement age in a Social Security context then rises by two months per year through 1959. People who were born in 1960 and after that become eligible to receive their full Social Security benefit on her 67th birthdays.
If you do wait until you become eligible to receive your full benefit you can indeed earn an unlimited amount of money and still collect your full Social Security benefit without any penalties being imposed.
The thing is, you don’t have to wait into you reach full retirement age to apply for Social Security. Once you reach 62 you can choose to start receiving your benefit, but it will be less than the full benefit you would have been entitled to if you waited until you reached full retirement age.
If you start receiving Social Security early, your benefit is reduced by one dollar for every two dollars that you earn above $14,160. It should be noted that this is the figure that is in place for 2011 but it is subject to change.
Planning for retirement is one important aspect of a holistic plan for aging. If you are not yet fully prepared, it may be a good idea to take action and arrange for a consultation with an experienced and licensed central New Jersey legacy planning attorney.