Wednesday, April 01, 2009

SSA explains how Annual Earnings Test stops at full retirement age

My 66th birthday occurs in July, 2009, and I got a nice letter from the “Social Security Administration: Retirement, Survivors, and Disability Insurance” yesterday.

They use euphemistic language. “We are writing to tell you about the Social Security benefit that will be available to you when you reach full retirement age in July 2009.”

“The earnings limit will no longer apply to you.” Whoop-ee!

The letter explains “if you worked and had your benefits reduced because you earned over the limit, the reduction stops in July.” Then “if you have not been working, the limit has not affected you and we will continue to pay you.”

Later it makes the most important statement, which addresses some email questions I have gotten. “Remember, your Social Security benefits are based on your earnings. If you decide to keep working or return to work, the additional earnings could increase your future benefits.”

The Full Retiremet Age chart is available on the Social Security Administration website here.

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