Q: If I retire in September at age 63, and have earned over $17,000 so far this year, can I still start Social Security this year?
A: Yes, a person can receive Social Security when they retire even if having high earnings up to retirement.Annual earnings limits vary based on your age compared to full retirement age (FRA), which is age 66 for birth years 1943-54.
Earnings limits end with the month you reach FRA. For a person younger than FRA all year, the 2015 earnings limit before benefit reduction is $15,720.
People retire all during the year and many have earned over annual earnings limits before then. For them, a one-time special rule lets Social Security be paid for months of actual retirement. Details about benefits when working are in the SSA retirement planner at www.socialsecurity.gov/planners/retire .
Did you know? The 2015 Social Security Trustees Report presents current and projected financial status of the Social Security (OASDI) trust funds. Issued in July, the report is at www.socialsecurity.gov/OACT/TR/2015 .
ADVERTISEMENT
It is worth your time to read at least the report Highlights and Conclusion, both of which are short.
The combined asset reserves of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, one year later than projected last year, with 79 percent of benefits payable at that time. Without Congressional action, the Disability Trust Fund will become depleted in 2016, unchanged from last year’s estimate, with 81 percent of benefits still payable.
Since 2010, overall expenses have exceeded tax only income but it may surprise you to learn that overall Social Security asset reserves are still growing. Total expenditures in 2014 were $859 billion.
Total income was $884 billion, which consisted of $786 billion in non-interest income and $98 billion in interest earnings. Asset reserves held in special issue U.S. Treasury securities grew from $2,764 billion at the beginning of the year to $2,789 billion at the end of the year.
Under current law, the projected cost of Social Security increases faster than projected income through 2037 primarily because of the aging of the baby-boom generation and relatively low fertility since the baby-boom period.
Cost will continue to grow faster than income after 2037, but to a lesser degree, due to increasing life expectancy.
Based in Grand Forks, Howard I. Kossover is the Social Security Public Affairs Specialist for North Dakota and western Minnesota. Send general interest questions to him at howard.kossover@ssa.gov . Read his online articles at http://socialsecurityinfo.areavoices.com .
