If still working should you take Social Security Benefits at 62

[exboyfil]

Given that if the Trust Fund runs out in 2035 benefits will be scaled back to 83% of current amount without a change in the law, would it make more sense to start taking SS as soon as possible (I turn 62 next year but plan to work at my primary job until I am 67 or 68 and then take something less desk oriented but more active if physically able)?

Also if the GOP gets in there will they ram through a law that benefits current SS participants at the expense of future ones?

My wife will be receiving half of my SS check. She barely had any income in the few years that she actually worked outside the home (which was from about 1989 to 2000). It was almost always part time and near minimum wage.

[NewHendoLib]

1. I am sure it will be fixed. I'm holding out for 70.

1.5 more years!

[mitch96]

8. Just increase the SS tax on higher incomes.. In 2024, up to $168,600 in earnings are subject to Social Security payroll

taxes. Millionaires are set to hit that threshold in March and won't pay into the program for the rest of the year. It's about time the 1% pays their fair share..
Raise this limit and problem solved, job done...Now the problem is getting it pushed thru...
m

[dflprincess]

20. I waited until 70

it was an $800/month difference in my check.

[NewHendoLib]

21. yes - it is very significant. But I also feel lucky that we can wait.

[dflprincess]

22. Agreed

It's one thing for someone like me whose working life has been spent behind a desk.

When I hear Republicans wanting to make 70 the full retirement age I know these are people who have no idea the toll working construction, being a nurse, or any job that keeps you on your feet all takes on your body.

[JenniferJuniper]

2. Keep in mind, you can only

earn about 21k a year from a job before you have to start giving money back to social security.

[dflprincess]

19. To be clear, that only applies to those who are collecting under full retirement age

I waited until 70 to collect, but am still working full time. No penalty - except the hit I took on taxes. But that will change when I retire.

[flying_wahini]

3. It depends on many things.

If you go to SS website there are all kinds of ways to figure out how much and when questions.
I waited until the year I was eligible and ready, too.
All that being said,
I seriously doubt that they are going to make any moves to quash it. Republicans depends on it at the same rate we do. We will raise the cap and then all will be settled. They will howl and scream for the constituents but agree to pass it. The Repugs don’t have the guts to do it themselves.
I really think they should have done it decades ago.

[Fiendish Thingy]

4. If you continue working while collecting SS, your benefits will be reduced

Before you reach full retirement age (67 for most folks now), there is a cap on wages you can earn before benefits are reduced. When I retired five years ago, it was something like $17,000/yr.

The formula is something like, for every $2 you exceed the cap by, your benefit is reduced by $1. So, if you made $20,000/yr after starting SS at age 62, your benefits would be reduced by $1500/yr. If you earned $40,000/yr, then your benefit would be reduced by $11,500, assuming a $17,000 income cap (which has probably been adjusted for inflation). And that is with taking an already reduced benefit at age 62.

If SS will be your only retirement income, you should definitely wait until full retirement age to take benefits, if your health permits.

Otherwise, if you can make ends meet without working and just drawing from various retirement funds, including SS, then definitely retire at 62.

IMO, taking early SS and continuing to work full time just doesn’t make sense.

[John1956PA]

10. I am no expert, but I do not think there is a reduction in benefits.

I think the way that it works is that, if income exceeds the cap (which may be about $17,000), then a portion of the recipient's SS retirement benefits are taxed up to maximum rate of 75%.

[Fiendish Thingy]

12. Here is the info from the experts:

https://www.ssa.gov/benefits/retirement/planner/whileworking.html#:~:text=If%20you%20are%20under%20full,earn%20above%20a%20different%20limit.

Benefits are reduced by $1 for every $2 over the cap.

[John1956PA]

14. Thank you for the links. If a recipient has not reached full retirement age, there is indeed a reduction.

The information in the links answers the question posed in the OP. You are correct. If the SS recipient has not reached retirement age, there is indeed an offset in the amount of the SS retirement benefits.

My answer in my previous reply was off point. My answer referred to a recipient who HAS reached retirement age. In that situation, there is no offset to the recipient's SS benefits no matter how much employment income the SS recipient receives.

Best wishes, and thanks again for the links.

[nitpicked]

15. The cap is $22320.

[CoopersDad]

18. That only applies to the $ over the limit, not the entire year's income.

I'm already 66, still working, and can retire and earn with no penalty whatsoever.

However, the longer I wait the more they pay. That said, the sooner I retire the more checks I will get between now and dead.

It's a question of how long I can expect to live, which is creepy but always has been I guess.

[jimfields33]

5. It depends

If you get 1000 at 62 and they take 18 percent in 2036 that leaves 884 dollars a month. You wait until 67 and get 1800 a month. 18 percent is deducted to make it 1476 a month. Can you live with the final amount.


That of course only occurs if nothing changes and they really deduct 18 percent from everyone’s checks which I do find doubtful.

[CCExile]

6. Different reasons for different folks

I had worked (real jobs) since I was 14, have a good pension, have a VERY MODEST paid off house, and a very modest lifestyle. My friends started dying in their late 50's and early sixties. I decided that I was not going to die "in harness" so I retired the day I turned sixty, and so did my wife. We left Austin for a cheaper, quieter, smaller city and never looked back. I consider myself luckier than most. I was in the last batch of people with real pension options. I feel for those born later. They will get a raw deal.

[Auggie]

7. My goal is to wait until age 70

The payout difference for me between retiring at age 66.5 vs 70 is about $800 a month more.

[kimbutgar]

13. I'm also holding out until 70 and have 2 more years

Luckily, I have two nice paying gig jobs that I work when I want which would equal to what I’d get on SS and gets me out of the house and active!

[Auggie]

17. Hey, we're nearly the same

I have three years, three months to go. Same kind of gig job set-up too.

[Voltaire2]

9. no, not unless you plan to die young(ish).

Break even for max benefits is 79, deferring to 70 vs 62. It's 75 if you defer to 66. If you aren't working, take the benefits, If you are defer. Again, if you already know your expiration date that changes the calculation

[Pluvious]

11. This is a very "situational" question...

As we say in poker, "it depends"

Two important factors to consider are inflation and debt

If taking your SS early helps you reduce or eliminate your debt, it could be a net benefit
If your SS goes into wealth preserving assets or high yield equities, you could be realizing a a net win

Hopefully you can review your circumstances with a competent financial advisor to determine your optimal decision

GL friend

[nitpicked]

16. Other factors to consider

One''s health, if known (versus avoiding all doctors)

And health/death age of one's ancestors and other relatives.