Can you collect social security and still work at 62? This is a common question among individuals approaching retirement age. As the Social Security system is designed to provide financial support to retirees, many people wonder if they can continue working while receiving these benefits. In this article, we will explore the rules and regulations surrounding this topic, helping you make an informed decision about your retirement plans.
The Social Security Administration (SSA) allows individuals to start receiving benefits as early as age 62. However, the amount of benefits you receive may be reduced if you choose to start collecting early. The full retirement age (FRA) varies depending on the year you were born, but it typically ranges from 66 to 67. If you wait until your FRA to start collecting benefits, you will receive the full amount.
When it comes to working while collecting Social Security at age 62, there are a few important factors to consider:
1. Earnings Limit: If you are under your full retirement age, you may earn up to a certain amount without incurring a penalty on your Social Security benefits. For those born in 1943 or earlier, the limit is $14,160 per year. For those born in 1944 through 1954, the limit is $17,640 per year. For every $2 you earn above the limit, your benefits will be reduced by $1.
2. Reduced Benefits: If you start collecting Social Security at age 62, your monthly benefits will be reduced by a certain percentage for each month before your full retirement age. This reduction is permanent and cannot be recovered once you reach your FRA.
3. Delayed Retirement Credits: If you choose to delay collecting Social Security benefits beyond your FRA, you will receive delayed retirement credits. These credits increase your monthly benefit amount by a certain percentage for each month you wait. The percentage increases each year until you reach age 70.
4. Taxation: If your combined income (Social Security benefits plus other income) is above a certain threshold, your Social Security benefits may be subject to taxation. The threshold varies depending on your filing status and whether you or your spouse are considered “married filing jointly” or “married filing separately.”
In conclusion, you can collect Social Security and still work at age 62, but there are certain limitations and considerations to keep in mind. It’s essential to understand the earnings limit, potential reduction in benefits, delayed retirement credits, and taxation to make the best decision for your financial future. Consulting with a financial advisor or the SSA can provide further guidance and help you navigate the complexities of the Social Security system.
