• Question
  • I want to retire in 4 months

    Asked by someone from West Warwick, RI on 8/25/2016

    At the age of 61 and work part time. Can I do this? I know there will be a penalty - however, I can no longer work the hours or perform my job requirements. I own rental property, will this affect my retirement?

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  • Categories: Retirement Planning, Retirement Calculators

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • You can retire whenever you want, but it's worth modeling out what your future might look like - you can build a free retirement plan here: https://www.newretirement.com/retirement-calculator/

    As you alluded to there is a Social Security work penalty if you are under your full retirement age.

    You can find your full retirement age here: http://www.ssa.gov/retirement/1943.html

    From the SSA web site:

    https://faq.ssa.gov/link/portal/34011/34019/Article/3739/What-happens-if-I-work-and-get-Social-Security-retirement-benefits

    "If you are under full retirement age for the entire year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2015, that limit is $15,720"

    Note - only income from work applies to this limit - so your rental income should not count.

    You can read about the work penalty here: http://www.ssa.gov/retire2/whileworking.htm

    http://www.newretirement.com/Services/Social-Security-When-To-Start.aspx

  • Login to rate this answer:   Answered on 9/2/2016
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.