A. If you wait and retire after your full retirement age, your benefit will be increased incrementally for each year that you wait to retire (the percentage depends on what year you were born), up to age 70. In addition, the extra years of work could possibly increase the base amount of your benefit. Note that there is no point in waiting past age 70 — any additional years of waiting will not increase your Social Security benefit.
A. This effects more than just taxes.
- If you are under your full retirement age and are still working, your benefits will be reduced by $1 for each $2 you earn above $13,560 (in 2008).
- If you reach full retirement age in 2008, your benefit is reduced by $1 for each $3 that you earn above $36,120 for income received prior to the month that you reach full retirement age.
- After attaining full retirement age, there is no reduction.
A. If you retire earlier than your full retirement age, your benefit will be reduced. To the right is a chart that shows the percentage of the full benefit if retiring at age 62 (varies based on your year of birth). Note that when you retire prior to your full retirement age, your benefits will be permanently reduced. They will not increase when you reach your full retirement age. You can request a copy of your Social Security earnings statement online at www.ssa.gov. It takes approximately two weeks to arrive.