Can you collect social security at 70 and still work? This is a question that many individuals approaching retirement age ask themselves. With the rising cost of living and the desire to maintain a comfortable lifestyle, it’s natural to wonder if it’s possible to continue working while receiving social security benefits. In this article, we will explore the options available to individuals who wish to delay collecting social security benefits until the age of 70 and still remain employed.
Social security is a government program designed to provide financial assistance to retired individuals, disabled individuals, and the surviving dependents of deceased workers. The age at which individuals can start collecting social security benefits is generally 62, but many people choose to wait until they reach their full retirement age, which is typically 66 or 67, depending on their birth year. However, it’s possible to delay collecting social security benefits until the age of 70, which can significantly increase the monthly benefit amount.
When you delay collecting social security benefits until the age of 70, your monthly benefit amount increases by a certain percentage each year. This increase is known as the delayed retirement credit, and it adds up to a total of 8% per year, up to the age of 70. For example, if your full retirement age is 66 and you delay collecting benefits until 70, your monthly benefit would be approximately 32% higher than if you had started collecting at age 66.
So, can you collect social security at 70 and still work? The answer is yes, but there are some important considerations to keep in mind. First, it’s essential to understand that there are no restrictions on working while collecting social security benefits. However, if you are under your full retirement age and earn more than a certain amount, your benefits may be reduced. This limit is adjusted each year and is based on the year you were born.
For individuals born in 1943 or earlier, the limit is $14,160 per year. For each $2 earned above this limit, $1 of benefits is withheld. However, once you reach your full retirement age, there are no earnings limits, and you can continue working without any reduction in your social security benefits.
Another important factor to consider is that if you continue working after reaching your full retirement age, your benefits will not be affected. In fact, working can provide additional income and keep you engaged in the workforce, which can have numerous benefits for your mental and physical health.
In conclusion, it is indeed possible to collect social security at 70 and still work. By delaying your benefits until the age of 70, you can enjoy a higher monthly benefit amount and continue working if you choose to. Just be sure to understand the earnings limits and how they may affect your benefits if you are under your full retirement age. With careful planning, you can create a retirement strategy that allows you to enjoy the best of both worlds: financial security and the fulfillment of continued employment.
