Once you reach age 62, you are eligible to receive social security benefits.

However, if you still work, your benefits are reduced when your earnings reach a certain level. For 2005, you lose $1 in benefits for every $2 you earn over $12,000. In the year you reach full retirement age, you will l$1 in benefits for every $3 you earn over $31,800 ($2,650/month). This reduction only applies for the months before you actually reach full retirement age.

There is no limit on earnings beginning the month an individual attains full retirement age (65 and 4 months for retirees born in 1939; 65 and 6 months for those born in 1940). Each year, the full retirement age increases by a couple months. If you were born in 1941, full retirement age is 65 and 8 months.

For 2006, these amounts will increase by 2-3 percent. If you are nearing full retirement age and you still work, keep an eye on your earnings. You don’t want to lose any of your benefits.