Hey Boomers, want to reduce your Social Security monthly payments? Yeah, like you want to amputate your own fingers with scissors. But some of you will do it. Not the fingers. The Social Security payments.
At age 62 you can “retire” early and start receiving those government checks.
Of course, you already know that “retiring” at 62 slashes your monthly payments 25%. But, hey. Money is money, right? Not so fast.
If you work in “retirement” Big Brother grabs away $1 for every $2 you make if you work in “retirement.” So let’s do some math. Start with $14,000. That’s the amount the government says you can make a year before your Social Security checks are slashed. Now let’s pretend you get $1000 a month in government checks from the good old SS. And let’s pretend you make $10 an hour working at something in retirement, like store greeter. That’s about $20,000 a year for you full time store greeters.
Crunch the numbers. $20,000 is $6000 more than $14,000. Am I right? Remember, for each $2 over the limit Uncle Sugar takes $1 of your Social Security. Cut to the chase scene. SS now sucks $3000 from your yearly take. And that comes to $250 a month. That means your monthly check is not $1000, but $750. But wait! It gets worse!
The SS doesn’t call you every month and ask how much money you make in “retirement.” No, no, no. They wait until your tax returns are filed. Sometimes years go by, then whammo! “Sir, we overpaid you. We want it back. Would you prefer to pay the eighteen thousand dollars all at once. Or should we reduce your monthly checks?” Accommodating sonsabitches, right?
So how do you fix this situation? Well, a) Don’t make more than $14,000 in retirement. Or, b) Live on $1000 a month. Actually there is c) Don’t take SS payments at 62. Or even d) Don’t make more than $14,000 a year in “retirement.” There is also e) and effing g), not to mention h) and so forth. But you can figure those out all by your lonesome. They’re called “scenarios.”
Want some more good news about Social Security payments to baby boomers? Those payments can be taxed even if you wait to full retirement age. Yep. Like regular income. Astonishing isn’t it? Come back for more information on that bipartisan fiasco passed into law by Democrats and cheerfully signed by Republican President Ronald Reagan. Big Brother anyone? Oh yeah, baby. He’s watching all right. Your wallet.
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