Can You Collect Social Security At 62 And Still Work
Yes, you can begin collecting Social Security as early as age 62, and you can still work while you collect these benefits. However, there is a limit to the amount that you can make while receiving benefits. Most people working full time will earn more than the limit of $18,960, and their benefits will be reduced by $1 for every $2 that they earn over the limit. If working part-time or full-time and earning less than this limit, then there will be no reduction in benefits.
You Can Claim Social Security Benefits Earned By Your Ex
Just because you’re divorced doesn’t mean you’ve lost the ability to get a Social Security benefit based on your former spouse’s earnings. You can receive a benefit based on his or her record instead of a benefit based on your own work record if you were married at least 10 years, you are 62 or older, and you are single.
Like a regular spousal benefit, you can get up to 50% of an ex-spouse’s benefit — less if you claim before full retirement age. And the beauty of it is that your ex never needs to know because you apply for the benefit directly through the Social Security Administration. Taking a benefit on your ex-spouse’s record has no effect on his or her benefit or the benefit of your ex’s new spouse. And unlike a regular spousal benefit, if your ex qualifies for benefits but has yet to apply, you can still start collecting Social Security based on the ex’s record, though you must have been divorced for at least two years.
Note: Ex-spouses can also take a survivor benefit if their ex died after the divorce, and, like any survivor benefit, it will be worth up to 100% of what the ex-spouse received. If you remarry after age 60, you are still eligible for the survivor benefit.
A claiming strategy if youre divorced: Exes at full retirement age who were born on January 1, 1954, or earlier can apply to restrict their application to a spousal benefit while letting their own benefit grow.
C You Can Continue Working And Not Receive Your Retirement Benefits
If you decide to continue working and not start your benefits until after full retirement age, your benefits will increase for each month you do not receive them until you reach age 70. There is no incentive to delay filing for your benefits after age 70. Continuing to work may also increase your benefits, because your current earnings could replace an earlier year of lower or no earnings, which can result in a higher benefit amount.
If you are not receiving your Social Security benefits when you turn 65, you will need to apply for Original Medicare three months before you turn 65. If you dont sign up for Medicare Part B when youre first eligible at age 65, you may have to pay a late enrollment penalty for as long as you have Medicare coverage.
However, if you or your spouse are still working and covered under an employer-provided group health plan, talk to your personnel office before signing up for Medicare Part B. Once the covered employment ends, you may be eligible for a Special Enrollment Period to sign up for Part B. If so, you wont have to pay a late enrollment penalty.
Don’t Miss: How Much Are Social Security Checks
You Can Work If You Are Retired But With Restrictions
It is important to know that everything depends on the benefits you get throughout the year. There is a limit to how much money you can earn when you are collecting your pension and working at the same time. If you earn more money than the limit, you will have to pay a series of taxes. However, if you earn less money, you will not have any problem.
In this sense, anyone born after February 2, 1960 can receive and keep these Social Security benefitsin full no matter how much money they earn while working. This means that there are no limits when a person born after that date retires at age 67, which is the full retirement age.
On the other hand, if a person born on that date applies for retirement before that age, they do have penalties when it comes to working. In this case, every $2 earned above $19560 per year means that the pension is reduced by $1, half. The bottom line is that you can work while retired, but under these conditions.
Age : Wait And Accumulate Delayed Retirement Credits
At 70, you will get the maximum amount of benefits that you can get from Social Security. It does not make sense to delay your Social Security retirement age past 70 because your benefit amount will not increase. Waiting until 70 to begin your Social Security if you are married and are the higher earner results in a higher survivor benefit for your spouse.
Don’t Miss: Mysocialscurity
When Can I Get Social Security
The earliest you can start receiving Social Security benefits is age 62. But the earlier you elect to receive your benefits, the smaller your monthly checks will be . To receive full benefits, you will have to avoid collecting Social Security until you reach your full retirement age. For people born in 1960 or later, that age is 67. And with the delay retirement credits, you can get your largest benefit at age 70.
If you decide to retire early, you have the option of delaying your Social Security benefits. This strategy may work particularly well for married couples.
How Does Social Security Disability Affect Retirement Benefits
Whether retirement is only a few years away or youre a younger disabled worker planning for the future, understanding the impacts of receiving Social Security Disability Insurance is important. Find out what you need to know about disability and retirement, plus tips for managing your benefits, from the Social Security disability lawyers at SSDA USA.
Don’t Miss: Social Security Break Even Age Calculator
If You Were Employed But Werent Covered By Social Security
In the beginning, Social Security didnt cover any public sector employees. But as many states dropped their own pension plans and adopted coverage agreements with the Social Security Administration, things have changed.
Today there are still 15 states that participate solely in their own pension plans instead of Social Security:
Those states are:
- Rhode Island
If you are a teacher in one of those states, the rules for collecting a Teachers Retirement System pension and Social Security can be confusing and maddening to try and figure out.
Thats especially true if youve paid into the Social Security system for enough quarters to qualify for a benefit, which is fairly common among teachers.
Many teachers find themselves in this situation for a variety of reasons. For some, teaching is a second career, after theyve spent years working in a job or a state where Social Security taxes were withheld.
Others may have taught in a state where teachers do participate in Social Security. For example, teachers in my town, which is divided between the states of Arkansas and Texas, could qualify for both.
If they worked in Arkansas for at least 10 years and then taught in Texas , they would qualify for both Social Security and the Teacher Retirement System of Texas.
How To Understand Your Social Security Benefit If You Worked In Both
This may surprise you but your Social Security statement does not reflect any reduction in benefits due to your teachers pension. Theyll wait until you file to tell you what the reduction is if you qualify for both a teachers retirement and Social Security benefits.
Understanding if a reduction in benefits will apply to you, and how much that will be, does not have to wait until you file for Social Security. You can get a good idea today by understanding the key differences between the two rules which may reduce your benefit amount:
From a very high level, you should understand that the WEP rule only applies to individuals who are eligible for a Social Security benefit based on their own work history and have a pension from work where they did not pay Social Security tax.
Meanwhile, the GPO rule only applies to individuals who are entitled to a Social Security benefit as a survivor or spouse and have a pension from a Federal, state, or local government job, in which they did not pay Social Security tax.
Heres a look at how each rule would impact your benefit.
Don’t Miss: When Can I Draw Social Security Benefits
Ask Larry: Can My Wife File At 62 And Later Get Full Social Security Spousal Benefits
Social Security may be one of your largest assets. What and when you collect will make a huge difference to your lifetime benefits.
Todays column addresses some ramifications of filing early, the ability to restrict an application before full retirement age , reductions in benefits due to foreign pensions, voluntarily and involuntarily suspending benefits and the application of delayed retirement credits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, a company that markets Maximize My Social Security and MaxiFi Planner. Both tools maximize lifetime Social Security benefits. MaxiFi also finds retirement account withdrawal strategies and other ways to lower your lifetime taxes and raise your lifetime spending. Most important, it suggests how much to spend and save each year to enjoy a stable living standard through time.
Can My Wife File At 62 And Later Get Full Social Security Spousal Benefits?
Before filing, you and your wife may want to use one of my company’s two tools Maximize My Social Security or MaxiFi Planner to help maximize your lifetime Social Security benefits. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
Can I Make A Restricted Application For Spousal Benefits Now?
What Can I Do About The Reduction In My Benefit Rate?
A Guide On Taking Social Security
The decision of when to take Social Security is highly dependent on your circumstances. You can start taking it as early as age 62 , wait until you’ve reached full retirement age or even until age 70. While there’s no “correct” claiming age for everybody, the rule of thumb is that if you can afford to wait, delaying Social Security can pay off over a long retirement. Here are some of the rules and guidelines.
Recommended Reading: Social Security Benefits Based On Last 5 Years
Waiting To Claim Social Security Can Increase Your Payout
Let’s say John, who was born in 1955, is in good health and enjoys his job. John’s full retirement age is exactly 66 and two months, at which point he can claim 100% of his monthly Social Security benefit of $1,500. John decides to continue working for a few more years, until his 69th birthday, and delays his benefit.
By the time John claims his Social Security benefit at 69, his monthly payout will be $1,840, 122.7% of his full retirement-age benefit. By delaying, John increased his monthly Social Security income by about $340. Note that the rules are different for spouses consult the Social Security website for details.
Anyone can create a free My Social Security account to find out what their pretax monthly Social Security benefit will be, based on current earnings, and see how that could change depending on the date they leave work. For those in good health or with a greater chance of longevity, it may be worth it to hold out.
Research from United Income found that elderly poverty could be cut in half if every retiree claimed Social Security at the “financially optimal time.” The report said retirees stood to lose a collective $2.1 trillion in wealth, or about $68,000 per household, because they chose to claim Social Security benefits at the wrong time, which, for many, is before their full retirement age.
Claiming Social Security Benefits At The Right Time Means More Money In Your Pocket Here’s A Guide To Everything From Knowing Your Full Retirement Age To Taking Social Security Spousal Benefits
For many Americans, Social Security benefits are the bedrock of retirement income so maximizing this stream of income is critical.
The rules for claiming Social Security benefits can be complex, but this guide will help you successfully navigate the details. Educating yourself can ensure that you claim the maximum amount to which you are entitled.
Here are 12 essential details you need to know.
Recommended Reading: Social Security 70
You Can Receive Benefits Before Your Full Retirement Age
You can start receiving your Social Security retirement benefits as early as age 62, but the benefit amount will be lower than your full retirement benefit amount.
If you start receiving your benefits before your full retirement age, we will reduce your benefits based on the number of months you receive benefits before you reach your full retirement age.
If you wait until age 70 to start your benefits, your benefit amount will be higher because you will receive delayed retirement credits for each month you delay filing for benefits. There is no additional benefit increase after you reach age 70, even if you continue to delay starting benefits.
Special Rule As You Approach Full Retirement Age
If you are already receiving your retirement benefits, a special higher earnings limit applies in the calendar year you turn your full retirement age . If you will reach full retirement age in 2021, you can earn up to $4,210 per month without losing any of your benefits, up until the month you turn 66. But for every $3 you earn over that amount in any month, you will lose $1 in Social Security benefits. Beginning in the month you reach full retirement age, you become eligible to earn any amount without penalty.
If you are self-employed, you may receive full benefits for any month during this first year in which you did not perform what Social Security considers “substantial services.” The usual test for whether you worked substantial services is whether you worked in your business more than 45 hours during the month . In other words, if you work in your business more than 45 hours in a month, Social Security may reduce your benefit.
Read Also: Sociat Security
How Does Early Retirement Affect Social Security
Many adults look forward to retirement. And some wouldnt mind leaving the workforce ahead of schedule. But few people think about the drawbacks of retiring early. Few realize that an early retirement might affect their long-term financial plan and their access to certain benefits. A financial advisor can help you figure out all of your retirement and social security issues.
How Will Working Affect Social Security Benefits
In a recent survey, 68% of current workers stated they plan to work for pay after retiring.1
And that possibility raises an interesting question: how will working affect Social Security benefits?
The answer to that question requires an understanding of three key concepts: full retirement age, the earnings test, and taxable benefits.
Don’t Miss: What Will I Get From Social Security
If Both Of You Worked You’re Both Entitled To A Payout
My spouse and I both have paid into the Social Security system for over 35 years each. I was told by a senior family member that my husband and I cannot both receive our Social Security benefits, but that we can only receive a benefit for one or the other of us. So if my husband retires and takes his Social Security benefit, when I retire I will not receive my Social Security benefit that I’ve been paying into all these years. Is that true?
Do I Qualify For The Exception To This Rule Can I Draw Both Ssdi And Retirement
There is one exception that allows qualified individuals to draw both retirement and SSDI benefits at the same time, but this is rare and still does not allow them to collect more than their full retirement benefit.
This occurs when someone opts for early retirement between age 62 and their full retirement age but is then approved for SSDI benefits. Some people set themselves up for this by filing for early retirement after an injury or illness caused them to have to quit work. They can begin receiving early retirement to help them cover bills until their SSDI claim receives approval and the waiting period for those benefits expires.
Once this happens, they can begin receiving additional money from the SSA each month on top of their early retirement benefits. This will bring them to their full retirement benefit amount. They are also most likely qualified for retroactive benefits, which will bring them to their full retirement amount for any month they suffered a disability but were not yet approved for SSDI.
Recommended Reading: What Determines Social Security Payments
Why Did The Full Retirement Age Change
Full retirement age, also called “normal retirement age,” was 65 for many years. In 1983, Congress passed a law to gradually raise the age because people are living longer and are generally healthier in older age.
The law raised the full retirement age beginning with people born in 1938 or later. The retirement age gradually increases by a few months for every birth year, until it reaches 67 for people born in 1960 and later.