Any Social Security experts here?

[Cement Man]

I am going to turn 62 next year in July, and plan to retire from my job before then - maybe in May or sooner.  I had intended to go on Social Security directly after I turned 62.  I had always assumed that I could do that, and I understand that I cannot earn more than about $12K annually without having my SS benefit reduced by $1 for every $2 I earn over the annual limit for those who have not attained full retirement age.  No problem - after 40 years of hard work I want to sit on the porch a lot, reload and shoot more, and go fishing with my grandkids anyway.  I had always assumed that the earnings limitation kicks in after I turn 62.
Anyway, I take care of some elderly folks - my mother and my aunt, and I received their annual notices of their new year benefit changes (COL increases) and there was some verbiage in the letter referring to annual earnings limitations, etc.  The wording seems to suggest that earnings in a calendar year would count against the annual earnings limitation - possibly interpreted to mean that what I would earn prior to turning 62, in the calendar year 2008, would count against the annual limitation on retirees of less than full retirement age.  In my case, I will have earned enough in '08 prior to turning 62 that it would wipe out any Social Security benefits I would earn for the year after I turn 62.  That just doesn't seem right, but I cannot find that issue addressed specifically on the Social Security web site. Calling SS on the phone is simply hopeless.  I tried and the voice menus, questions, waiting etc. are beyond my patience.
I just want to confirm that the earnings limitation kicks in AFTER I turn 62, and that I'm not going to be penalized for what I've earned in 2008 when I was 61.  Does anyone here have specific knowledge or actual experience with this issue?  Or do you know where I can look it up.  I have Googled it every way I can, but I cannot find that specific issue addressed.

[alsaqr]

Here is the Social Security website.  This is also the page you want to see.

http://www.ssa.gov/retire2/whileworking.htm

This is a quote from the S/S website.  Hope this helps. 

"You can work while you receive Social Security retirement (or survivors) benefits. When you do, it could mean a higher benefit for you in the future. Higher benefits can be important to you later in life and increase the future benefit amounts your family and your survivors could receive.

While you are working, your earnings will reduce your benefit amount only until you reach your full retirement age.

We use a formula to determine how much your benefit must be reduced:

If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit.

For 2007 that limit is $12,960. In 2008 that limit will be $13,560.

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit, but we only count earnings before the month you reach your full retirement age.

If you will reach full retirement age in 2007, the limit on your earnings for the months before full retirement age is $34,440.
(If you were born in 1942, your full retirement age is 65 years and 10 months.)

If you will reach full retirement age in 2008, the limit on your earnings for the months before full retirement age is $36,120.
(If you were born in 1943, your full retirement age is 66 years.)

Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.

If you are not already receiving benefits, be sure to contact us at the beginning of the year you reach full retirement age. Even if you are still working, you may be able to receive some or all of your benefits for the months before you reach full retirement age."

[Steelbanger]

I'm not an expert by any means but I remembered seeing this when I went on SS almost 4 years ago. This is from the Social Security site and is buried but I was able to find it again. I hope this helps with your question. Below is the link and also the text from that link.


   http://www.socialsecurity.gov/pubs/10069.html#special   

 
    
"Special rules for the first year you retire
Sometimes people who retire in mid-year already have earned more than the yearly earnings limit. That is why there is a special rule that applies to earnings for one year, usually the first year of retirement. Under this rule, you can get a full Social Security check for any whole month you are retired, regardless of your yearly earnings.

In 2007, a person under full retirement age for the entire year is considered retired if monthly earnings are $1,080 or less. For example, John Smith retires at age 62 on October 30, 2007. He will make $45,000 through October.

He takes a part-time job beginning in November earning $500 per month. Although his earnings for the year substantially exceed the 2007 annual limit ($12,960), he will receive a Social Security payment for November and December. This is because his earnings in those months are $1,080 or less, the monthly limit for people younger than full retirement age. If Mr. Smith earns more than $1,080 in either of those months (November or December), he will not receive a benefit for that month.

Beginning in 2008, only the yearly limits will apply to him.

Also, if you are self-employed, we consider how much work you do in your business to determine whether you are retired. One way is by looking at the amount of time that you spend working. In general, if you work more than 45 hours a month in self-employment, you are not retired; if you work less than 15 hours a month, you are retired. If you work between 15 and 45 hours a month, you will not be considered retired if it is in a job that requires a lot of skill or you are managing a sizable business."

[Cement Man]

Thanks to both of you for your replies.  Steelbanger - the section on "Special rules for the first year you retire" is exactly what I was looking for.  That answered my question - and I liked the answer.  I believe I will indulge in a holiday libation to celebrate and wish I could buy you one as well.  Thanks guys!

[Gun Runner]

I retired at 62, 5 yrs ago. was working a part time job. I also retired from the military in Dec of 77. S/S told me that my military pay was a whole diffrent thing and would not count against my S/S. My part time job did not put me anywheres near the CAP where S/S would deduct anything. If you have a insurance plan you can carry over from work you might want to keep it active. Cant remember when S/S starts paying for SOME medical. When you turn 65 they will take a chunk out of your S/S (mine is $96.00 a mo.) AARP says they have a good thing going for those over 65 but check around and you can get the same thing cheaper.
Just what I have learned since going on S/S

Gun Runner