Can you collect social security at 66 and still work? This is a common question among individuals approaching retirement age. Many people wonder if they can continue working while receiving their social security benefits. In this article, we will explore the answer to this question and provide some valuable insights to help you make an informed decision.
Social security is a government program designed to provide financial assistance to retired workers, disabled individuals, and surviving family members. The age at which you can start collecting social security benefits is determined by your birth year. For those born in 1956 or earlier, the full retirement age is 66. However, you can begin receiving benefits as early as age 62 or wait until age 70.
Can you collect social security at 66 and still work?
Yes, you can collect social security at age 66 and still work. There are no restrictions on working while receiving social security benefits. However, it’s important to understand the potential impact of your earnings on your benefits.
If you choose to work and receive social security benefits at the same time, your benefits may be reduced. This reduction is based on your earnings and is subject to a specific formula. For every $2 you earn above the annual limit, you will lose $1 in benefits. The annual limit for 2021 is $18,960. Once you reach your full retirement age, there are no earnings limits, and you can earn as much as you want without affecting your benefits.
It’s also essential to consider the tax implications of receiving social security benefits while working. If your combined income (from both your job and social security benefits) exceeds a certain threshold, a portion of your benefits may be taxed. The threshold varies depending on your filing status and the amount of your income.
Another factor to consider is the potential increase in your benefits. If you delay collecting social security beyond your full retirement age, your benefits will increase by a certain percentage each year until you reach age 70. This means that if you continue working and delaying your benefits, you could potentially receive a higher monthly payment in the long run.
In conclusion, you can collect social security at age 66 and still work. However, it’s crucial to understand the potential impact of your earnings on your benefits and the tax implications. It’s always a good idea to consult with a financial advisor or the Social Security Administration to determine the best approach for your specific situation. By doing so, you can make an informed decision that aligns with your financial goals and retirement plans.
