Dear Larry,

I'm 63, working full-time, and am wondering if I retire and file for SS benefits this year on July 1, are my monthly social security benefits reduced during the remainder of the year because of income generated prior to retiring?

Cheers, Tom

Dear Tom, If you don't earn anything after you retire, Social Security will apply a monthly earnings test after you start collecting your benefits and you won't be hit by the Earning Test. They have this special monthly earnings test in the first year you start collecting your retirement benefits, which they call your Grace Year. If you look at the FAQs (link is at bottom of our home page), you can read more about the Earnings Test.

The real question is why not wait till 70 to get a roughly 65 percent higher benefit?

best, Larry