Can you work and still collect social security at 62? This is a common question among individuals approaching retirement age. The answer to this question depends on various factors, including the individual’s work status, income level, and the specific rules and regulations set forth by the Social Security Administration (SSA). In this article, we will explore the ins and outs of collecting social security while still working at the age of 62.
The Social Security program is designed to provide financial support to eligible individuals during their retirement years. The age at which one can begin receiving full retirement benefits is 66, but individuals can start collecting benefits as early as age 62. However, there are certain implications and considerations when choosing to collect social security at this early age.
Firstly, it’s important to understand that collecting social security at 62 will result in a reduced monthly benefit. The SSA calculates the monthly benefit amount based on the individual’s earnings history and the age at which they choose to start receiving benefits. By starting at age 62, the monthly benefit is reduced by a certain percentage each month until the individual reaches full retirement age. This reduction is permanent, so it’s crucial to weigh the pros and cons before making a decision.
Another factor to consider is the potential impact of working while collecting social security at 62. If you earn more than a certain amount, your social security benefits may be subject to taxation. The SSA considers earnings from both self-employment and wages. For those who are under full retirement age, the earnings limit is $18,960 in 2021. If you earn more than this amount, $1 will be deducted from your social security benefits for every $2 you earn above the limit. This deduction can significantly reduce the overall amount of benefits you receive.
However, there is some good news for those who choose to work while collecting social security at 62. Once you reach full retirement age, there is no limit on the amount of income you can earn without affecting your social security benefits. This means that you can continue working and earning a higher income without worrying about your benefits being reduced.
It’s also worth noting that if you choose to work after collecting social security at 62, you may have the option to “earn back” some of the benefits you received during the early years. This process is known as “Social Security Credits” and allows you to increase your monthly benefit amount by earning additional credits. By working and paying into the system, you can potentially boost your retirement income in the long run.
In conclusion, while it is possible to work and still collect social security at 62, there are important considerations to keep in mind. The reduced monthly benefit, potential taxation of earnings, and the opportunity to earn back benefits are all factors that should be carefully evaluated. It’s essential to consult with a financial advisor or the SSA to determine the best course of action for your specific situation. Remember, making an informed decision regarding your social security benefits can greatly impact your financial well-being during retirement.
