Can you work and collect social security at 65? This is a question that many individuals approaching retirement age ask themselves. As the population ages and the retirement landscape evolves, understanding the options available to you becomes increasingly important. In this article, we will explore the possibility of working past the age of 65 while also collecting social security benefits.
Firstly, it’s essential to clarify that the age at which you can start collecting full social security benefits is 66 for those born between 1943 and 1954. However, this age gradually increases, reaching 67 for those born in 1960 or later. While you can start collecting benefits as early as age 62, doing so will result in a reduced monthly payment.
One of the primary reasons individuals choose to work past the age of 65 is to maintain their lifestyle and supplement their retirement income. By continuing to work, you can delay collecting social security benefits, which may result in a higher monthly payment. This is because your Social Security benefits are calculated based on your highest 35 years of earnings, and working longer can increase your earnings and, consequently, your benefits.
Another factor to consider is the earnings limit for those who are still working and collecting social security. If you are under the full retirement age, you can earn up to $18,960 in 2021 without any reduction in your benefits. However, for every $2 you earn above this limit, your benefits will be reduced by $1. Once you reach your full retirement age, there is no earnings limit, allowing you to work without affecting your social security benefits.
It’s also important to note that if you decide to work past the age of 65, you may have the option to adjust your social security benefits. You can choose to receive reduced benefits while you are still working and then increase them later, once you have stopped working. This can be a strategic move to ensure you maximize your retirement income.
In conclusion, the answer to the question “Can you work and collect social security at 65?” is yes, you can. However, it’s crucial to understand the implications of working while collecting social security, including the potential impact on your monthly benefits. By carefully planning your retirement strategy, you can make the most of your social security benefits and ensure a comfortable retirement.
