Can you still work full time and collect social security? This is a question that many individuals approaching retirement age often ask themselves. The answer to this question can have significant implications for one’s financial stability and retirement planning. In this article, we will explore the rules and regulations surrounding working full time while collecting social security benefits.
Social Security is a government program designed to provide income to eligible individuals after they retire. It is funded by payroll taxes paid by workers and employers throughout their careers. While many people assume that they must stop working to receive social security benefits, the reality is that you can still work full time and collect social security, but there are certain limitations and considerations to keep in mind.
Firstly, it’s important to understand the full retirement age (FRA) for each individual. The FRA is the age at which you can receive your full social security benefit without any reduction or penalty. For those born between 1943 and 1954, the FRA is between 65 and 67 years old, depending on the year of birth. If you choose to start collecting social security benefits before reaching your FRA, your monthly benefit amount will be reduced.
However, if you continue to work full time after reaching your FRA, you can still collect your full social security benefit. This means that you can work full time and collect social security simultaneously without any penalties. In fact, continuing to work after reaching your FRA can actually increase your social security benefits over time, as your earnings will be used to calculate your adjusted benefit amount.
On the other hand, if you choose to work before reaching your FRA, there are some important considerations to keep in mind. For every $2 you earn above the annual earnings limit, your social security benefit will be reduced by $1. The earnings limit for those under their FRA in 2021 is $18,960. Once you reach your FRA, there is no earnings limit, and you can continue to work full time without any reduction in your social security benefits.
It’s also worth noting that if you have earned substantial income during your career, continuing to work may allow you to delay collecting social security benefits until a later age. By doing so, you can potentially increase your monthly benefit amount, as your benefit will be based on your highest 35 years of earnings.
In conclusion, the answer to the question “Can you still work full time and collect social security?” is yes, you can. However, it’s essential to understand the rules and regulations surrounding social security benefits and how they may be affected by your earnings. By planning ahead and considering your financial goals, you can make informed decisions about when to start collecting social security benefits while continuing to work full time.
