ASK KIM
Work Hours Can Affect Social Security
by Kimberly Lankford

I'm 55 and have worked full-time since I was 21. If I drop to part-time status, and cut my salary to 80% of my current $53,000, will that affect my social security benefits at age 66?

Yes. Benefits are based on your 35 highest earning years. If you retire before working for that long, the calculation includes a $0 for each missing year.

Since you've already worked for 34 years, staying full-time for one extra year could make a difference -- especially if your salary was much lower (after adjusting for inflation) for many of the years.

To see how much of a difference it can make, dig up a copy of your social security earnings statement, which lists how much you've paid into the system since you started working. You should have received a statement around your birthday. Then run your numbers through the benefits calculator at the Social Security Administration's Web site to see what your payouts would be under several scenarios. You can also order an earnings statement at the social security Web site if you can't find your copy.