Smyrna Times

SOCIAL SECURITY BENEFITS

Thousands of Men 65 Continue to Work; Do Not Want to Retire

Over nine million persons are now getting old-age and survivors insurance benefits each month, according to Myron Milbouer, manager of the Wilmington Social Security office. However, thousands of men, 65 years of age and over, and women, 62 years or over, continue to work and do not want to retire or hesitate to do so. Many reduce their earnings by doing part-time or seasonal work.

The social security law recognized this, Milbouer says, and provides that men between 65 and 72, and women between 62 and 72, who do not earn more than $1200 within a calendar year, may receive their social security benefits for all 12 months of the year.

It's vitally important for all workers who plan to retire and those who are now getting monthly benefits and intend to do part-time work, to fully understand the "retirement test."

First, the term "earnings" must be understood and should be distinguished from wages paid. Earnings are the value of the services being rendered for which wages are due later. Earnings include cash (gross wages before deductions) and wages paid in a form other than cash, such as meals, living quarters, etc. Bonuses, commissions, fees, vacation and holiday pay are included as earnings. Earnings from work not covered by social security are also included. Investment income, such as dividends from stocks, interest payments of any kind, annuities, pensions, rentals from real estate are not counted as part of the annual earnings.

A worker who applies for benefits during the year in which he becomes 65 (62 for a woman) must count the earnings from the beginning of the year even though he is not 65 (62 for a woman) until months later.

A worker who becomes 72 during the year must count earnings until the end of the year. Even though benefits are paid for the month the worker becomes 72 and thereafter, the earnings after he reaches age 72 can affect entitlement for the months in the year before he reaches age 72.

A beneficiary who earns $1200 or less for the year is entitled to benefit checks for all months.

A beneficiary who earns over $2080 and works all 12 months—having earned over $80 in all months—loses all monthly benefits during the year.

A booklet which gives a full explanation of the "retirement test" is available at the social security district office. Call, write, or phone and ask for a copy of "How Earnings Affect Social Security Benefit Payments."