How Working More Can Actually Decrease Your Social Security Benefit
All through your working years, you pay Social Security taxes, knowing you'll reap the rewards later on with monthly benefits in retirement. You can begin taking Social Security benefits once you turn 62, but your full retirement age (FRA) -- which is the baseline for calculating the amount of your benefits -- is determined by the year you were born.
Data source: Social Security Administration.
You can delay your benefits past your FRA until you reach 70, increasing your monthly benefit. However, if you take benefits before your FRA, Social Security considers it early and will reduce your benefits based on how long you have until your FRA. If it's within 36 months, benefits are reduced by five-ninths of 1% monthly. Any months over 36 will reduce your benefits by five-twelfths of 1% monthly.
Source Fool.com
