1. SOCIAL SECURITY
How Working After 62
Impacts Your Benefits

2. Even though 62 is the “most
prevalent age” for Americans to
apply for Social Security benefits…

3. …more than half of people aged
60 or older say they plan to work
in retirement.

4. What do 60 year
olds plan to do in
retirement?
Find part-
time work
16.6%
Work for
myself
6.1%
Work as
long as
possible,
31.2%
Stop
working
14.6%
Other
31.5%
Source: Federal Reserve, Report on the Economic
Well-Being of U.S. Households in 2013

5. This is ironic because working in
retirement can reduce your Social
Security benefits.

6. Fortunately, the good news is that
any money withheld from your
benefits will eventually make its
way back into your pocket.

7. Here’s how…

8. If you apply for benefits prior to full
retirement at 66 but continue
working, then the Social Security
Administration will lower your
monthly benefits depending on
how much you earn.

9. In 2015, the SSA will deduct $1
from your benefit payments for
every $2 you earn above $15,720.

10. So, if you earn $20,000 a year,
then your benefits will be reduced
by $2,140.

11. And if you earn $40,000 a year,
then your benefits will decline by
$12,140.

13. But it’s important to note that your
benefits aren’t lost forever.

14. Every month your benefits are
withheld results in a benefit
increase at full retirement.

15. For example, let’s assume you
apply for Social Security at 62
but then have 24 months’ worth
of benefits withheld due to
working before full retirement.

16. Upon reaching 66, the SSA will
recalculate your benefits to give
you credit for the two years of
forgone benefits.

17. This will raise your effective
retirement age for calculating
future benefits to 64.

18. And thereby increase the size of
your future checks by 12
percentage points relative to your
primary insurance amount.

19. 75%
80%
87%
93%
100%
108%
116%
124%
132%
62 63 64 65 66 67 68 69 70
Data Source: Social Security Administration
Social Security Benefits by Retirement Age
Percent of Primary Insurance Amount

20. And, of course, who doesn’t need
more income in retirement?

21. This is why the retirement experts
at The Motley Fool were surprised
to learn about a handful of little-
known “Social Security secrets”
that can boost a retiree’s income
by as much as $60,000.

22. A MarketWatch reporter has even
estimated that if more Americans
knew about these loopholes, the
government would have to pay
an extra $10 billion every year in
benefit payments.

23. If this sounds too good to be true,
it isn’t.

24. To see how these loopholes could
increase your retirement income,
click here to access a free copy
of The Motley Fool’s latest report
on Social Security strategies that
could transform your retirement.