Working as long as possible is a great way to stay young and improve your retirement finances. And yes, you can get Social Security retirement benefits and work at the same time.

No Penalties if You Passed Your “Full Retirement Age”

If you work and are over your full retirement age, you may keep all of your benefits, no matter how much you earn.

If you were born between January 2, 1943, and December 31, 1954, your full retirement age for retirement benefits is 66. Consult the table below to see the full retirement age for anyone younger.

Year of Birth Full Retirement Age Months Between Age 62 and Full Retirement
1955 66 and 2 months 50
1956 66 and 4 months 52
1957 66 and 6 months 54
1958 66 and 8 months 56
1959 66 and 10 months 58
1960 67 60
Source: Starting Your Retirement Benefits Early

Under Full Retirement Age? Penalties Might Be Applied if You Are Collecting and Earning Over Certain Thresholds

According to the Social Security Administration’, if you are younger than or at full retirement age and earn more than certain amounts, your Social Security benefits will be reduced.

NOTE: It is important to note, though, that these benefit reductions are not truly lost. Your benefit will be increased at your full retirement age to account for benefits withheld due to earlier earnings.

If you are younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits. If you are younger than full retirement age during all of 2021, the SSA deducts $1 from your benefits for each $2 you earned above $18,960.

If you reach full retirement age and start claiming, the SSA deducts $1 from your benefits for each $3 you earn above $50,520 until the month you reach full retirement age.

Do You Need to Work? Should You Delay Social Security?

Two of the most important questions everyone needs to ask themselves are:

  • How long do I need to work?
  • When should I start Social Security?

The answer will be complex. However, the NewRetirement Planner can help you make the best decision for you and your resources and values. This powerful but easy to use tool enables you to:

Try different scenarios and immediately see the impact on your future. See the impact of working longer. And, if you are collecting Social Security, see the potential penalties.

Just plug in your desired work income, when you plan to work, and when you plan to claim Social Security and see how it affects your overall retirement income.



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