What Age Can You Collect Social Security and Work?
In the United States, the age at which individuals can collect Social Security benefits while still working is a common topic of concern. Many people wonder when they can start receiving these benefits without affecting their income or eligibility. This article aims to provide a comprehensive overview of the age criteria for collecting Social Security and working simultaneously.
Full Retirement Age
The first thing to understand is the concept of Full Retirement Age (FRA). The FRA is the age at which you can collect your full Social Security retirement benefits without any reductions. For those born between 1943 and 1954, the FRA is 66. For those born in 1960 or later, the FRA gradually increases to 67. It is important to note that the FRA is just the age at which you can receive full benefits; you can still collect benefits earlier or later, but with certain reductions or adjustments.
Early Retirement
If you choose to collect Social Security benefits before reaching your FRA, your monthly benefits will be reduced. The reduction amount depends on how early you start collecting benefits. For each month you begin receiving benefits before your FRA, your monthly benefit will be reduced by a certain percentage. For example, if you start collecting benefits at age 62, your monthly benefit will be reduced by about 30% compared to if you waited until your FRA.
Working and Collecting Social Security
While collecting Social Security benefits, you may still work and earn income. However, there are specific rules regarding how much you can earn before your benefits are affected. If you are under your FRA, your benefits may be reduced if your earnings exceed a certain limit. For those under the age of 66 in 2023, the limit is $19,560 per year. Once you reach your FRA, there is no limit on how much you can earn while collecting benefits.
Delaying Benefits
On the other hand, if you choose to delay collecting Social Security benefits beyond your FRA, your monthly benefits will increase. For each year you wait, your benefits will increase by a certain percentage, up to age 70. This increase is called Delayed Retirement Credit (DRC). By delaying benefits, you can maximize your monthly income in the long run.
Conclusion
Understanding the age at which you can collect Social Security and work is crucial for making informed decisions about your retirement. By familiarizing yourself with the Full Retirement Age, early retirement rules, and earnings limits, you can plan accordingly and ensure a comfortable retirement. Remember, the age at which you start collecting benefits can significantly impact your monthly income and overall financial well-being.
