10 Things to Know About Social Security
Kiplinger’s had a very good article online about 10 things you need to know about social security. There are several good tips listed there and one of the many questions that we get about social security is regarding trying to increase your benefits by working late in your career.
Social security benefits are based upon the top 35 years of earnings during your career (as indexed for inflation). Therefore, if you started work at age 22 and had good earnings from that age until age 57 or so, you have put in your good 35 years. If you want to work part-time from age 60-65 to build up your earnings base for social security, it really will not help you any since those earnings will be less than your 35 good years.
You will end up paying social security taxes into the system that will gain you no benefit.
It always wise to review your social security statement at least once a year to make sure they have posted the correct earnings to your account. I have seen several times where they picked up the wrong self-employment earnings for our clients.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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