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Social Security Earnings Limit is Up
in 2003
 April
2, 2003 - American's receiving Social Security survivor's benefits, or who
receive early retirement benefits from Social Security, can earn of to
$11,520 in 2003, without having to give any of your payments back. If you go
over the cap, you pay back $1 for every $2 you earn. But, if you reach full
retirement age this year (65 plus 2 months), you only pay back $1 for every
$3 you earn before your birthday month. Then you keep it all.
No matter what your full retirement age
is, you
may start receiving benefits as early as age 62
Year of Birth
Note:
Persons born on January 1 of any year
should refer to the previous year. |
Full Retirement Age |
Age 62
Reduction
Months |
Monthly % Reduction |
Total % Reduction |
|
1937 or earlier |
65 |
36 |
.555 |
20.00 |
|
1938 |
65 and 2 months
|
38 |
.548 |
20.83 |
|
1939 |
65 and 4 months
|
40 |
.541 |
21.67 |
|
1940 |
65 and 6 months
|
42 |
.535 |
22.50 |
|
1941 |
65 and 8 months |
44 |
.530 |
23.33 |
|
1942 |
65 and 10 months |
46 |
.525 |
24.17 |
|
1943--1954 |
66 |
48 |
.520 |
25.00 |
|
1955 |
66 and 2 months
|
50 |
.516 |
25.84 |
|
1956 |
66 and 4 months
|
52 |
.512 |
26.66 |
|
1957 |
66 and 6 months
|
54 |
.509 |
27.50 |
|
1958 |
66 and 8 months
|
56 |
.505 |
28.33 |
|
1959 |
66 and 10 months |
58 |
.502 |
29.17 |
|
1960 and later |
67 |
60 |
.500 |
30.00 |
You can also retire at any time between
age 62 and full retirement age. However, if you start at one of these early
ages, your benefits are reduced a fraction of a percent for each month
before your full retirement age.
As a general rule, early retirement will
give you about the same total Social Security benefits over your lifetime,
but in smaller amounts to take into account the longer period you will
receive them.
Here's An Important Point: There are
disadvantages and advantages to taking your benefit before your full
retirement age. The advantage is that you collect benefits for a longer
period of time. The disadvantage is that your benefit is permanently
reduced. Each person's situation is different, so make sure you contact
Social Security before you decide to retire.
* Percentage monthly and total
reductions are approximate due to rounding. The actual reductions are .555
or 5/9 of 1% per month for the first 36 months and .416 or 5/12 of 1% for
subsequent months .
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