How working can impact Social Security in retirement

Many people would like to work into their 60s, 70s and beyond, but they wonder if their income will affect their Social Security benefits.

To address that topic, we talked to B.J. Jarrett, a spokesman for the Social Security Administration (www.ssa.gov).

Q: Do you lose any of your Social Security benefits if you work after full retirement age?

A: No, there is no reduction in your benefits if you reach full retirement age and continue to work, no matter how much you earn. If you were born between 1/2/1943 and 1/1/1955, your full retirement age is 66 years. To check your full retirement age, go to ssa.gov/retirement/1943.html

Q: What counts as earnings?

A: We count only the earnings you make from your job or your net earnings from self-employment. We include bonuses, commissions and vacation pay, because that's all based on employment, but we don't count investments, pensions and other retirement income.

Q: Can your Social Security benefits increase as a result of your employment after you reach full retirement age?

A: Yes. We calculate Social Security benefits using your highest 35 years of earnings. So if your earnings after full retirement age would replace one of those 35 high years, then the Social Security Administration will do a recalculation, and you may be due an increase in your monthly benefits.

Q: When can your Social Security benefits be reduced by income from a job?

A: If you take your Social Security benefits before you reach full retirement age and you continue to work, then your benefits may 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 2014, that limit was $15,480. In 2015, that limit is $15,720.

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2014, the limit on your earnings was $41,400, but we only count earnings before the month you reach your full retirement age. In 2015, the limit on your earnings is $41,880.

For more information, go to www.ssa.gov/retire2/whileworking.htm