Social Security: Bigger Benefits By Additional Work
Late Retirement
Some people continue
to work full time beyond their full retirement age--and they don't
sign up for Social Security until later. This delay in retirement
can increase your Social Security benefit in two ways:
Your extra
income usually will increase your "average" earnings, and the higher
your average earnings, the higher your Social Security benefit will
be.
In addition, a special credit is given to people who delay retirement
beyond their full retirement age. This credit, which is a percentage
added to your Social Security benefit, varies depending on your date
of birth. For people reaching full retirement age in 2003, the rate
is 6.5 percent per year. That rate gradually increases in future years,
until it reaches 8 percent per year for people reaching full retirement
age in 2008 or later. You no longer earn this delayed retirement credit
after you reach age 70.
Remember! You don't have to retire to get full retirement benefits.
Copyright 2006 . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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