Never Too Old
Many
people continue to work and get paid past their normal retirement age. No
matter how young or old people are, Social Security adds those earnings to
their lifetime earnings record. In turn, this 35-year earnings record is used
in determining their retirement benefits. If one has worked for less than 35
years, zeros are added into the formula for years not worked.
If one has worked more than 35 years, the lower earning years (adjusted for
inflation) are dropped from the formula. A surprisingly large number of people
are affected by this and should review their benefits. We know of child singers
and teenage actors who have substantial earnings. We also have met many people
in their 70s or 80s who continue to work and are well paid. Some women
initially retired with a spousal benefit but continued to work. At some point, the
woman’s own benefit could eclipse the spousal benefit, which is at most half as
large as the primary wage earners’. In the case of a divorcee, it may be a
little difficult to check, but it may be worth doing. With the help of the
Social Security administration, a review of your benefits is always available.