Many people choose to continue working after applying for early retirement benefits.
However, this could lead to a reduced benefit.
You can work while collecting Social Security retirement benefits. Working at a high enough salary could increase your average lifetime earnings, which would in turn increase your future retirement benefit.
However, if you apply for early retirement benefits at age 62 and keep working, you could reduce your benefit. The reduction only applies on the years you are still working– there is no permeant impact to your benefits.
Until you reach FRA, the Social Security Administration (SSA) will take money out of your benefit if you exceed the annual income limit.
This year, the maximum monthly earning is $1,630 before the SSA will deduct. If you are collecting benefits before FRA, the SSA will reduce your benefits by $1 for every $2 you earn above the limit.
Once you reach FRA, there is no longer a limit on how much you can earn and still receive the full benefit.