by KYW's Salil Gutt
A trying economy and a down stock market has many retirees thinking about part time work. If this appeals to you, you may want to know how extra earnings will affect your social security benefits.
The key factor is when you attain full retirement age. This can range from ages 65 to 67. Your social security benefits are affected only if you are below full retirement age and want to collect benefits while working. You will lose $1 dollar of benefits for every $2 over the annual limit. The annual limit for 2008 is $13,560, or $1,130 a month. If you earn below $1,130 a month it's not a problem. However, if your earnings are cyclical then for all of the months where you earn over $1,130 you have to return a part of your benefits check or have the excess deducted from future payments. Be careful if you earn too much your spouse's benefits will also be reduced.
The good news. You can earn as much as you want if you are over full retirement age and not have you or your spouse lose any social security benefits.
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