MAKING A CHOICE: SOCIAL SECURITY OR WORK

Americans in their 60s face a dilemma these days: whether to retire early and receive reduced Social Security benefits or keep on working until 70 and get maximum benefits.

The problem with early retirement is that most Americans can't make ends meet on Social Security benefits alone. There are 870,000 Americans between 65 and 69 who are working, mostly because of that reason.

Those who retire at age 62 to 64 lose $1 in benefits for every $2 earned above $9,600. Those who retire at 65 to 69 lose $1 for every $3 they earn above $15,500, and in 2002 that limit rises to $30,000. They aren't really lost, just delayed until 70 and older.

This earnings test, as it is called, really comes into play with today's robust economy and low unemployment. That is why so many Americans in their 60s keep on working.

Every year lawmakers want to eliminate the earnings test, and undoubtedly most call for its dismissal to please voters of retirement age.

The truth is, when these Americans are working, they and their employers are pouring money into a Social Security fund that some day, it can be hoped, will stand on its own without threat of collapse. Elimination of the earnings test could mean that day will never come.