r earned average


During Retirement


become entitled to retirement benefits, the Social Security Administration calculates your primary insurance amount (PIA), upon which your retirement benefit will be based. Your PIA is recalculated annually if you have any new earnings that might increase your benefit. So if you continue to work after you start receiving retirement benefits, these earnings may increase your PIA and thus your future Social Security retirement benefit.


Many retirees


work for personal fulfillment--to


stay mentally and physically active,


to enjoy the social benefits of working, and to try their hand at something new.


Working may also cause a reduction in your current benefit. If you’ve reached full retirement age (66 to 67, depending on when you were born), you don’t need to worry about this--you can earn as much as you want without affecting your Social Security retirement benefit.


HOW WORKING AFFECTS YOUR PENSION If you work for someone other than your original employer, your pension benefit won’t be impacted at all--you can work, receive a salary from your new employer, and also receive your pension benefit from your original employer.


But if you continue to work past your normal retirement date for the same employer, or if you retire and then return to work for that employer, you need to contact the employer to determine how your pension will be impacted.


HOW WORKING AFFECTS


HEALTH BENEFITS Many individuals work during retirement to keep their medical coverage. If working during retirement


means you will move from full-time to part-time, it’s important that you fully understand how that decision will impact your medical benefits. Of course, once you turn 65, you’ll be eligible for Medicare. You’ll want to contact the Social Security Administration approximately three months before your 65th birthday to discuss your options.


Not working during your retirement doesn’t mean you’re just sitting on the bench. But if you choose to stay involved in the game and keep your throwing arm warm, consider the many effects of earning your income so you are making the best decision for today and for the future.


oldsfinancial.ambassadoradvisors.com • 3


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