Should you Work after you put in an Early Social

Should you Work after you put in an Early Social Security Claim? Or will you get Taxed to Death?

The average American senior citizen over 65 usually makes most of his or her income through some kind of a combination of Social Security and and after retirement job; pensions and investments make up the rest. But even if there are tens of millions of senior citizens who know enough about how the system works to put in a Social Security claim while still punching the clock at a job, there are many people who find it hard to understand how the government feels about taxing Social Security benefits. Why should it be confusing?

Take someone who wishes to put in a Social Security claim somewhat short of the regular retirement age. Of course, you are penalized for this with lower-than-usual benefits; and even as your earnings rise, you'll still find that your benefits don't catch up. In fact, for every dollar that you earn over about $14,000, you lose 50 cents in Social Security benefits. While things do get somewhat better when you finally arrive at the year that you turn full retirement age, you still continue to lose money until your birthday - to the tune of 30 cents for every dollar you make over about $37,000 a year. When you do finally reach full retirement age, while you can be confident you won't have to do with a truncated Social Security check anymore, you will have to pay taxes on 85% of your benefits if your income is above $35,000 a year. The more you make above this number, the more you are taxed. How do you protect your income and not get taxed out of house and home? There are a few ways you can achieve this.

To begin with, you need to make sure that you understand that working after retirement is nothing to be afraid of. You can't ever work hard, put yourself in a higher tax bracket and have everything you worked for take away from you in taxes. That can't happen. While you certainly can push yourself into a different tax bracket, it will never be that bad. The system isn't designed in a way that it can get you to pay more than you make. Let's say that you retire at 62 and put in your Social Security claim; you end up getting only three-quarters of your full due because you are applying early.Let's say that afterwards, you find an opportunity to work and make so much money that all your benefits are withheld. When you turn 66 though, the Social Security people will recalculate everything and you will begin to receive the full money that you were always due. People who work never lose out for any reason.

But there is one area where you do lose out once and for all when you put in your Social Security claim a little early. You don't get any delayed credits. People who take their time with their retirement get to earn those. They can be pretty valuable.

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