I am now 58 and plan to retire when I am 62, if I deceide to work then
will it effect my social security and what I collect and if so how
much.

Hi the3rd,

If you retire at age 62, you will receive 75% of the amount you would
receive if you waited till you are 66. This percentage goes up
incrementally each month you wait after age 62 before you start to
collect. The deduction is to allow you to collect the same [total]
amount of money for a longer period of time, which reduces the amount
you get each month because you start to draw early. The actual dollar
amount varies because social security payment amounts are dependent on
how much you earned while in the workforce.


REFERENCE:

If you were born between 1943 and 1954...
http://www.ssa.gov/retirement/1943.html
..."Your full retirement age is 66
Remember, the earliest a person can start receiving Social Security
retirement benefits will remain age 62.

If you start receiving retirement benefits at age 62, you will get 75%
of the monthly benefit because you will be getting benefits for an
additional 48 months..."

This page explains more:
http://www.ssa.gov/retirechartred.htm
..."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..."


You can work and collect social security, but there are maximums you may earn:

You can work and get Social Security at the same time 
http://www.socialsecurity.gov/retire2/whileworking.htm
Click here for details.



I recommend starting here:

RETIREMENT PLANNER - Decide When to Retire
http://www.socialsecurity.gov/retire2/index.htm



I hope this helps. If I can clarify further, please ask for
clarification and I'll be happy to assist you.


~~Cynthia


Search terms used at Google:
social security age retirement work

---

Request for Answer Clarification by the3rd-ga on 12 Feb 2006 12:54 PST

What I Need to know is not how much I am going to get when I retire,
but what effect would working full time have on it. Is there a
penality for working and if so how much (percentage).

---

Clarification of Answer by cynthia-ga on 12 Feb 2006 14:02 PST

Hi the3rd,

It's not a percentage. I wish it was that simple, but it's not!  

Social Security states this:

..."If you are under full retirement age for the entire year, we
deduct $1 from your benefit payments for every $2 you earn above the
annual limit.

For 2005, that limit is $12,000. 
For 2006, that limit will be $12,480. ..."

[They don't list an "annual limit" amount for 2010, the year you will turn 62]

..."Starting with the month you reach full retirement age, you can get
your benefits with no limit on your earnings..."

[So, this means that after you reach age 66, there will be no more
deductions from your benefits if you continue to work.]


Next, I have provided a link to a "Social Security Calculator" that
you will need to input personal information to get an estimate.

Social Security Quick Calculator
http://www.socialsecurity.gov/OACT/quickcalc/
This calculator will estimate your benefit amount.


Here's another: Application of Retirement Earnings Test
http://www.socialsecurity.gov/OACT/COLA/RTeffect.html
I think this is for folks already receiving benefits because I tried
it for myself, and they don't have a place to enter a FUTURE benefit
date.


To fully understand, you will need to read the SS web site and poke
around there.  There's 2 more calculators that will give you more
detailed answers about how much money is deducted while working.

Choose A Benefit Calculator
http://www.socialsecurity.gov/planners/calculators.htm


Please understand that this is complicated. I'm not going to be able
to tell you exactly how much will be deducted when you work, but I
have provided the Social Security resources for you to get the
information. It depends on several factors, of which are personal
information that you have not provided to me. The best way to
understand is to START HERE:

Near retirement?
http://www.socialsecurity.gov/retire2/near.htm


I already provided this link, but maybe you missed it:

You can work and get Social Security at the same time 
http://www.socialsecurity.gov/retire2/whileworking.htm


Let me know if you need more assistance, I'm still willing to assist!


~~Cynthia