For those contemplating retirement, there are a few things you should keep in mind so that you can maximize your social security income.

Beginning in 2012, the oldest of the baby boomers will be eligible to file for full Social Security benefits, although many of these people will continue to work well past the age of 66. The tough economic climate as well as the desire to continue to work may reflect this trend.

So how does working longer affect your Social Security benefits for the long term? The short answer is that you will receive a higher benefit amount, but that's not the only thing that you should consider.

The current Social Security system encourages seniors to keep working until their full retirement age of 66 years old so that you can receive full benefits. However, you can start receiving Social Security as early as age 62, but if you are working even part-time, $1 will be deducted from your benefit payment for every $2 you earn over $14,640. Some people view this as a penalty, but the system has developed a complex formula that adds back the withheld benefits until you reach full retirement age.

Another incentive to keep working is that if you wait until at least the age of 66, your benefits will be permanently reduced for every year you file before the full retirement age and increased for every year that you wait to file beyond the age of 66, up until age 70. Delaying benefits gives you a major increase in your monthly income after you retire.

If you find yourself in a situation where you or your spouse is unable to work until full retirement age because of illness or disability, you need help navigating the Social Security system. It's best to seek the advice of an attorney that specializes in Social Security issues. They understand the financial hardships that are caused because of an illness and injury, and can help you figure out a plan that best suits your situation.

The Social Security system is ever-changing and if you can wait to retire, it could prove beneficial for you and your family.

Source: Reuters, "To maximize retirement benefits, know the rules," Mark Miller, Jan. 18, 2012