Can you collect social security at 65 and still work? This is a common question among individuals approaching retirement age. As the population continues to age, more people are seeking to understand the rules and regulations surrounding social security benefits. In this article, we will explore the options available to individuals who wish to continue working while collecting social security at the age of 65.
The Social Security Administration (SSA) allows individuals to collect social security benefits at the age of 65, also known as full retirement age (FRA). However, it is important to note that the amount of benefits you receive can be affected by your earnings during this time. Here are some key points to consider when deciding whether to collect social security at 65 and still work:
1. Early retirement: If you choose to retire before reaching your full retirement age, your monthly benefits will be reduced. This reduction is permanent, so it is crucial to weigh the pros and cons of early retirement.
2. Delayed retirement: On the other hand, if you decide to delay collecting social security benefits beyond your full retirement age, your monthly benefits will increase. This increase is also permanent, so delaying retirement can be a smart financial decision.
3. Earnings limit: If you collect social security benefits while still working, there is an earnings limit that may affect the amount of benefits you receive. For individuals who reach their full retirement age in 2021, the earnings limit is $18,960 per year. If you earn more than this amount, $1 will be deducted from your benefits for every $2 you earn above the limit.
4. Spousal benefits: If you are married, you may be eligible for spousal benefits while still working. Spousal benefits are calculated based on your spouse’s earnings record, and you can collect these benefits without affecting your own retirement benefits.
5. Tax implications: Collecting social security benefits while still working may have tax implications. If your combined income (your income plus one-half of your social security benefits) is above a certain threshold, you may be required to pay taxes on a portion of your benefits.
In conclusion, the answer to the question “Can you collect social security at 65 and still work?” is yes, you can. However, it is essential to consider the potential impact on your benefits and tax obligations. Consulting with a financial advisor or the SSA can help you make an informed decision that aligns with your retirement goals and financial needs.
