Social Security: Working past age 62

People should start thinking about retirement as early as they can so they can be sure to collect the most in Social Security when they do retire.

social security card with cash and check representing social security payments

There are different factors that go into what you get each month, including when you choose to claim the payments.

Social Security checks are designed to only cover about 40% of your previous income.

The amount is determined by looking at what you earned during your working years.

It is also determined by when you choose to collect your benefits.


Social Security: Eligibility for spousal and your own benefits

If you made a higher income throughout your working years, then you will likely see higher monthly payments.

Social Security gets its funding by taxing the currently working people.

Then, when they retire, they can collect checks from this fund.

The maximum amount allowed to be taxed by Social Security for 2022 is $147,000. Money earned past that point is not taxed by Social Security.

The age you choose to retire is the next most important factor.


Starting your “My Social Security” online account

What is my full retirement age for collecting Social Security?

The age you can start to claim Social Security is 62, but you run the risk of losing up to 30% of your monthly benefits permanently.

If you continue to work past 62, you’ll have the potential for higher payments from work as well as getting your full benefit by waiting until full retirement age.

Your FRA is determined using your birth year.

  • 1943-1954 FRA: 66
  • 1955 FRA: 66 and two months
  • 1956 FRA: 66 and four months
  • 1957 FRA: 66 and six months
  • 1958 FRA: 66 and eight months
  • 1959 FRA: 66 and 10 months
  • 1960 and later FRA: 67

How to change your name on your card

Waiting to retire past your FRA

You can push off claiming your benefits until you reach age 70.

By doing this, your monthly payments will increase for each month you wait to claim.

You’ll get 100% of your benefits by claiming at your FRA, but you will get 132% of your benefits if you claim at age 70.


Social Security: Tax limit for 2022 explained

Working and your Social Security benefits

If you’re at your FRA or older when still working, you can keep your benefits.

Those who are younger, there is no limit to what you can earn while still getting benefits.

If you surpass an income threshold, the SSA will withhold a certain dollar amount.

$1 for every $2 earned by someone under their FRA past $19,560 will be withheld.

For being at or past your FRA, the SSA will withhold $1 for every $3 earned past $51,960.