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Ask Mary Jane Archives
- Social Security
- Social Security and Government Employees
- Early/Late Retirement
- Social Security Disability
- Dependent Children
Social Security
Q. I will be 65 in October, 2008. My understanding is that I cannot collect full benefits until I reach 66. Can I however, collect benefits at age 65 while continuing to work or do I have to wait until 66 to collect at all.
A. Benefits can begin as early as age 62 (subject to early retirement reduction) but until the month full retirement age is reached, an earnings limitation applies. Beginning with the month you reach full retirement age, you will be entitled to a full Social Security retirement benefit regardless of earnings.
Social Security has two separate earnings limitations – one that is applicable to everyone under full retirement age and a second, higher limitation applicable only in the year that full retirement age is reached. In 2008, the lower, general limitation is $13,560 with a $1 offset in benefits for each $2 in excess earnings. The 2008 higher limitation is $36,120 with $1 in benefits withheld for each $3 of excess earnings. Comparable earnings limits for 2009 are $14,160 and $37,680.
Should you choose to begin benefits when you reach age 65, an alternate monthly retirement test would be used. Retirees who begin benefits in mid-year can receive a monthly benefit without regard to total annual earnings if monthly earnings after benefits begin do not exceed 1/12 of the annual limitation ($1,130 in 2008, 1,180 in 2009). After benefits begin, if monthly earnings exceed the monthly limitation, no benefit whatsoever is payable for that month.
Next year you will be subject to the higher limitation. If you wish to take advantage of the higher limitation and maximize the number of months of benefits you can receive, apply late this year for benefits to begin in January. Provide the Social Security Administration with your best estimate of 2009 earnings for the months before you reach full retirement age. If your estimated earnings from January through September were less than the annual limitation, your benefits would begin in January. If estimated earnings through September exceed the higher limitation, benefits would begin in whatever later month they were due.
Regardless of when you apply for benefits to begin, you will be eligible for Medicare in October 2008. Apply for Medicare about three months before you reach age 65. If you are in the work force and have health insurance and creditable prescription drug coverage from your current employer (or from a spouse's current employer) you can defer enrolling in Medicare Part B Supplemental Medical Insurance or Medicare Part D Prescription Drug Insurance without risk of a future premium penalty when you do enroll. Medicare is secondary to current-employer coverage and the extra protection afforded (if any) may not justify enrolling in Parts B or D until you cease work (or your spouse ceases work). When work ceases or, if earlier, when employer coverage ends you have only 63 days to enroll in a Medicare Prescription Drug plan to avoid delayed-enrollment premium penalties. You will have seven months to enroll in Medicare Part B insurance without risk of penalty, but if you don't enroll in the first month you could face a month of no health insurance protection. If you do not enroll in either Part B or D during the prescribed time limits, you will have to wait for a future open season to enroll.
Social Security general:
Q. My date of birth is 10/10/45. When is the earliest I can submit an application for Social Security? How can I get an application? Can this be done on-line?
My first marriage lasted 26 years with my ex-wife (55yrs) now disabled. When can my ex-wife first apply for a Social Security spouse benefit (she never worked outside of the home).
A. The first month you will be eligible for a Social Security retirement benefit is November 2007 with the first benefit payable in December 2007. If you want to receive a benefit in the first month you are eligible, you should begin the application process in early September. If you so choose, you can begin on line. Go to www.socialsecurity.gov and follow instructions. The web site lists the documentation needed.
Even though she is disabled, your ex- wife will not be entitled to a Social Security spouse benefit based on your Social Security earnings until she reaches age 62. If you predecease her, since she is past 50, she could be immediately eligible for a disabled widow benefit if her disability is severe enough to meet the Social Security Act's disability criteria.