MYTH: DO YOU
REALLY
LOSE 50 S.S. CENTS ON THE DOLLAR, WORKING AT AGE 62?
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January, 2009 Here's
something the new administration could do at practically no cost:
beef up Social Security education so that people don't make bad
decisions. One of the most costly mistakes seniors make surrounds
the issue of working in retirement. Once you reach age 62, you're
eligible to start collecting Social Security benefits. If you keep
working, your check will be reduced by 50¢ for every dollar you earn
above $13,560. The notion that you'll "forfeit" that benefit forever
prompts legions of people to stop working at 62, says Andrew Biggs,
a Social Security expert at the American Enterprise Institute and a
former deputy commissioner of the Social Security Administration.
And that's a real shame because it's not true. Once you
reach full retirement age (anywhere between 65 and 67, depending on
when you were born), the size of your check is increased to make up
for any benefit reduction you experienced. But don't expect to hear
that from the Social Security Administration.
"They rarely mention it in publications or face-to-face meetings,"
says Biggs. "That's not good policy; we need to encourage people to
keep working." This is the kind of low-hanging fruit the Obama
administration can pluck right away.
(Above is an excerpt from:
Memo to Washington: Here's how to help retirees, CNNMoney.com)
