Work Full-Time at 66 and Collect Social Security: A Comprehensive Guide

Many individuals interested in working full-time at 66 often wonder about the impact of their employment on their Social Security benefits. This guide provides a detailed explanation of when and how you can work full-time while still receiving Social Security payments.

Understanding Full Retirement Age (FRA)

The key to working full-time at 66 while collecting Social Security benefits lies in understanding your Full Retirement Age (FRA). Your FRA depends on the year you were born. For those born in 1956, your FRA is 66. However, for those born later, this age increases gradually until reaching 67 for individuals born in 1960 or later.

Working Before FRA

For those who start receiving Social Security benefits before reaching FRA, there are earnings restrictions. If your annual earnings exceed a certain threshold, your benefits will be reduced. For 2023, if you are under FRA, you lose $1 in benefits for every $2 earned above $22,320.

Working After FRA

Once you reach your full retirement age, you can work full-time without any reduction in Social Security benefits. Individuals born in 1956 can start working full-time at age 66 without any budgeting for their Social Security benefits.

Practical Considerations

While the information provided above is straightforward, there are other factors to consider when working while receiving Social Security benefits:

Tax Implications: Earnings above the threshold may be taxed when collecting Social Security benefits. Consult a financial advisor or tax professional for personalized advice on tax implications. Federal Taxes: If you earn above the threshold, you may need to have federal taxes withheld from your Social Security check. This is a common practice to ensure compliance and to avoid penalties. Cherished Plan: Working full-time may impact your personal financial planning. Understanding how your earnings will contribute to your overall income and savings is crucial.

Personal Experiences and Advice

Personal Experiences:

Many people, like the one mentioned in the source, have successfully worked full-time after 66 and collected Social Security benefits. For example, someone born in 1956 and currently 66 can work 2-3 years extra without any penalties. They have been earning extra while collecting 100% of their Social Security benefits.

Advice:

It is wise to consult a financial advisor or tax professional to tailor the advice to your specific situation. They can help you navigate the tax implications and ensure that your full retirement plan is on track.

Conclusion

Can you work full-time at 66 and still collect Social Security? The answer depends on your specific circumstances, particularly your birth year and when you start receiving benefits. For those born in 1956, 66 is their FRA, allowing full-time work without penalty. However, for those born in 1960 or later, FRA is 67, with a need to consider earnings limits before this age. Always seek personalized advice to maximize your Social Security benefits while working full-time after 66.