Social Security

Social Security benefits are calculated by taking your age at the time you start receiving benefits and your earning over you work-life. Social security takes your 35 most productive years and averages them. This determines your basic benefit or the amount you will receive if you start drawing at “full retirement age.” 

The age you can start receiving Social Security is determined by the number of credits you have. Assuming you earn 4 credits per year and it takes 40 credits to be eligible a person could start drawing benefits at the age of 62. Full retirement age is between 65-67 years old. If you start your benefits before full retirement age your benefits will be permanently reduced. You do not have to start drawing your benefits until you are 70. The later you begin drawing your benefits the higher they will be. 

If you are at full retirement age and you continue to work you can keep all of your benefits. If you started receiving benefits before your full retirement age and you continue to work, there is a limit to how much you can earn before your benefits are reduced. 

If you are not individually eligible for benefits, you can still receive benefits based on your deceased spouse’s eligibility. Generally the Social Security benefit is not affected by your pension.

Sources: 
July 2004. Seniors and Social Security.www.texasbar.com