Can I work at 66 and collect social security? This is a common question among individuals approaching retirement age. With the increasing cost of living and the changing landscape of retirement planning, many people are looking for ways to maximize their income while enjoying their golden years. In this article, we will explore the possibilities of working at 66 and collecting social security, as well as the factors to consider when making this decision.
Firstly, it is important to understand that the age at which you can start collecting social security benefits is not fixed. According to the Social Security Administration (SSA), the full retirement age (FRA) varies depending on the year you were born. For those born between 1943 and 1954, the FRA is 66. However, you can start collecting benefits as early as age 62 or delay until age 70.
When considering whether to work at 66 and collect social security, there are several factors to take into account. One of the main advantages of working while collecting social security is the potential for increased income. By continuing to work, you can contribute to your retirement savings and potentially receive employer-sponsored benefits, such as health insurance and a 401(k) match.
However, it is essential to be aware of the potential impact on your social security benefits. If you start collecting social security before reaching your FRA, your monthly benefit amount will be reduced. This reduction is permanent and will not be restored if you decide to delay collecting benefits. Additionally, if you earn more than a certain amount while collecting social security, your benefits may be subject to income taxation.
On the other hand, if you choose to delay collecting social security until age 66 or later, your monthly benefit amount will increase. This increase is based on the fact that delaying benefits allows your Social Security account to continue growing, which can result in a higher monthly income during retirement.
When deciding whether to work at 66 and collect social security, it is also important to consider your overall financial situation. Assess your retirement savings, other sources of income, and your long-term financial goals. If you have sufficient savings and other income sources, working part-time or full-time at 66 may provide you with additional financial security and the opportunity to enjoy your retirement activities.
In conclusion, the question of whether you can work at 66 and collect social security depends on various factors, including your individual circumstances and financial goals. By carefully considering the potential benefits and drawbacks, you can make an informed decision that aligns with your retirement plans. Remember to consult with a financial advisor or the SSA to ensure you are making the best choice for your specific situation.
