Retire and Keep Earning- Exploring the Possibility of Collecting Social Security While Working
Can you collect social security while still working? This is a common question among individuals approaching retirement age. The answer to this question depends on various factors, including your age, income level, and the specific rules and regulations set by the Social Security Administration (SSA). In this article, we will explore the conditions under which you can collect social security benefits while still working and the potential implications of doing so.
Firstly, it’s important to understand that the age at which you can start collecting social security benefits is a significant factor. Generally, you can begin receiving benefits as early as age 62, but the amount you receive will be reduced if you start before your full retirement age (FRA), which is typically between 66 and 67, depending on your birth year. 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, the SSA has specific rules regarding earnings limits. If you are under your FRA, you can earn up to a certain amount without affecting your benefits. For those born in 1943 or earlier, the limit is $17,640 per year. However, for every $2 you earn above this limit, $1 will be deducted from your benefits. Once you reach your FRA, there are no earnings limits, and you can continue working without any impact on your social security benefits.
It’s also worth noting that if you continue working after reaching your FRA, your social security benefits will not be affected. In fact, continuing to work can have some advantages. For instance, if you delay collecting benefits until age 70, your monthly payments will increase by a certain percentage each year, known as delayed retirement credits. This can result in a higher lifetime benefit.
However, there are some considerations to keep in mind when collecting social security while still working. If you are receiving social security benefits and earn more than the annual limit for your age, your benefits may be reduced. Additionally, if you are self-employed, your income may be subject to self-employment tax, which could affect your overall financial situation.
In conclusion, the answer to the question “Can you collect social security while still working?” is yes, but with certain conditions. Understanding the rules and regulations set by the SSA is crucial to make informed decisions about when to start collecting benefits and how to manage your income while doing so. By carefully planning and considering the potential implications, you can ensure that you maximize your social security benefits while still enjoying the benefits of working.
