Retirement bottom line: Many will have to work until 70

[Yo_Mama]

39. Once you pass your full retirement age, you can work without penalty

If you are able to work and bank the extra SS funds, that's what I would do. Then in later years you can use your savings to supplement lower SS checks.

You can still put money in an IRA and not pay federal taxes on it if you are still working.

If you are going to have very low income later, you may want to defer taking SS for a year or two longer for higher income each month then.

I believe SS benefits are going to be cut, so I'd advise almost everyone to take SS as soon as they are able to get full benefits. I really don't see the downside for most people, because if you can work for two years longer and bank an additional 20-30K, those savings will really come in handy later.

You will pay extra taxes on your income if you are taking SS benefits and still working, even without the penalty. But you get an extra age deduction still, I think, and you can cut your income by using the IRA/Qualifed Retirement plan dodge, and you should be able to put an extra 10K aside.

Plus, future cuts to SS are likely to be disproportionately applied to those with higher monthly SS checks, so it's probably going to pay you to get more money earlier.

SS retirement age table is here:
http://www.ssa.gov/retire2/retirechart.htm

Born in 1960 or later is 67. Born 43-54 is 66. Between those points it goes up by a couple of months, so that if you were born in 1957, it is 66 and 1/2.

Realistically, a lot of older workers will have to slow down and will find that they can maybe work half-time in their late 60s. As you get older it is harder to withstand the stress of working full-time.