65 this coming June. Could use extra income, but continuing with work earning 90k a year. If I take SocSec at 65, I receive $2,048.00, but after income reduction, I think it is just North of $1,300.00. When I turn 66, and I continue working, does my base of 2,048.00 remain forever? I would like to wait until I am 66 to draw and I do plan on working full-time until 68-70, but finances are tight at this time for me. Trying to get by for one more year. What are the pros and cons of drawing this June versus in June 2018, 19, 29, 21, or 22? Confused.

Hi,

I don't know what you mean by 'income reduction'. There is an earnings test (https://www.ssa.gov/planners/retire/whileworking2.html) that applies until you reach full retirement age, and if you continue working throughout this year at a rate of $90K, the earnings test would require withholding of all of your benefits.

You could probably start drawing benefits effective with next January, though, since a higher earnings limit will apply for you, and only your earnings prior to June will count toward the limit. However, your full retirement age rate will be reduced by close to 3% if you start drawing 5 months early. On the other hand, if you wait past age 66 to start drawing, your full rate will increase by 2/3rds of 1% for each month you wait up until age 70.

Whenever you start drawing, you can still potentially increase your benefit rate if you continue working and earn more than one or more of the 35 earnings years previously used to compute your benefit rate (https://www.ssa.gov/pubs/EN-05-10070.pdf). You may want to strongly consider running the maximization software on this website before filing in order to explore all of your options.

Best, Jerry