Tip of the Week: Elderly Earning (5/8/00)

\| Home \| Site Search \| Previous Tips \|
	Elder Earning Financial Tip of the Week by Deloitte & Touche OnLine May 8, 2000

Older workers can earn more without jeopardizing Social Security.

See our archive of previous tips on your money, your taxes and your financial plan.

The recently passed Senior Citizens' Freedom to Work Act of 2000 has taken the lid off older workers' earnings.

That act repeals an earnings limitation for those receiving full Social Security benefits, except disability.

Before the repeal, workers who were age 65 to 69 were to be penalized $1 of Social Security benefits for every $3 they earned over $17,000 this year.

Those under 65, however, are still subject to a penalty of $1 in lost benefits for every $2 they earn over $10,800. The repeal of the cap starts with earnings in the month the worker turns 65.

The down side of the act is that the official retirement age will be raised from 65, to 67 for people born in 1959 or after. A calculator at the Social Security Administration's web site will show you what your retirement age is.