Q. I am 63 and a CSRS Offset employee. I intend to retire at 68. What is the downside to taking Social Security at full retirement age 66 while still working? At an estimated $2,000/month from Social Security on top of my regular salary for two years, it seems like a too-good-to-be-true nice bonus. Am I missing something?
A. Because you will have reached your full Social Security retirement age, that benefit won’t be subject to the earnings test. You’ll get every penny you are due. The only downside is that a portion of your Social Security benefit will be taxable. To find out how much that would be, go to http://www.ssa.gov/planners/taxes.htm.