Is there any downside to taking social security after retirement age if you're still working full-time?

7 This is actually a common misunderstanding! If you've reached your full retirement age (which is 67 for people born in 1960 or later), there is NO reduction in your Social Security benefits regardless of how much you earn from working. The earnings limit only applies to people who take benefits before their full retirement age. The potential downside is taxation. If your combined income (adjusted gross income + nontaxable interest + half of your Social Security benefits) exceeds certain thresholds, up to 85% of your benefits could be subject to federal income tax. With a full-time accounting job, you'd likely exceed these thresholds. Another consideration: every year you delay claiming between full retirement age and 70, your benefit permanently increases by 8%. So if you don't urgently need the money, waiting could significantly increase your lifetime benefits.

14 I was in exactly the same situation last year - trying to decide whether to claim at 67 while still working as a consultant. After spending hours on the phone with Social Security and getting conflicting info, I finally used https://taxr.ai to analyze my tax returns and project different Social Security scenarios. The tool showed me precisely how much I'd receive based on my earnings record and calculated how much of my benefits would be taxable. I was really confused about how working would affect my benefits and worried about making a mistake, but their analysis made it super clear that at full retirement age, there's no earnings limit. The difference in my case was about $53,000 in additional benefits by claiming now versus waiting until 70. They even showed me how my tax situation would change with the additional income.

19 Coming back to share my experience - I tried taxr.ai after seeing it mentioned here and WOW. I was planning to wait until 70 to maximize my benefit, but after running my numbers, I discovered that claiming at 67 (next year) while continuing to work part-time actually optimizes my lifetime benefits considering my family health history and other retirement accounts. The analysis showed I'd potentially lose around $32,000 in lifetime benefits by waiting until 70 in my specific situation. It also helped me understand exactly how much of my benefits would be taxable at different income levels, which helped me restructure some investments to reduce the tax hit. Definitely recommend checking it out if you're trying to make this decision!

9 If you're still working and trying to deal with Social Security, you NEED to talk to an actual SSA representative about your specific situation. I spent 3 weeks trying to get through to someone at Social Security about a similar question - kept getting disconnected or waiting for hours. I finally used https://claimyr.com and got through to an agent in 20 minutes after trying for weeks on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that after full retirement age, there's no earnings limit (contrary to what I was told by a financial advisor). But she also explained some nuances about my specific pension situation that I hadn't considered. Worth the call to get official confirmation rather than relying on internet advice - including mine!

22 Well color me surprised and wrong. After ranting about that Claimyr service, I tried it yesterday because I was desperate to resolve an issue with missing work credits on my record. I'd been trying for THREE MONTHS to get through to someone who could help. Got connected to an SSA agent in about 35 minutes. The agent pulled up my work history and found the missing credits from 2018-2019. This literally increased my projected monthly benefit by $320! Would have NEVER known about this error if I hadn't been able to speak with someone directly. Still can't believe it actually worked after all the frustration of trying to call them myself.

17 Something nobody's mentioned yet - if you're still working AND collecting social security, you should really look at how this affects your Medicare premiums too. If your income is high enough, you could be hit with IRMAA (Income-Related Monthly Adjustment Amount) which increases your Medicare Part B and D premiums. The thresholds are based on your tax return from two years ago, so plan ahead! For 2025, if your 2023 modified adjusted gross income was above $103,000 (single) or $206,000 (married), your premiums will be higher than standard.

5 My dad started taking social security at 67 while still working part time as a consultant. His big mistake was not realizing how it would affect his tax bracket! He ended up in a higher bracket and actually netted less overall than if he'd waited till 70 when he fully retired. Sometimes the extra SS income can actually hurt you financially if you're not careful.

One thing I'd add to this great discussion - don't forget to consider the "do-over" rule if you change your mind. If you start collecting Social Security and later decide it wasn't the right choice, you have 12 months from your first benefit payment to withdraw your application and pay back everything you received (without interest). This essentially gives you a one-time reset. Also, if you're married, coordinate your claiming strategy with your spouse! The timing of when each spouse claims can significantly impact survivor benefits. Sometimes it makes sense for the higher earner to delay while the lower earner claims early, or vice versa. Given that you're an accountant, you probably already know this, but make sure you're factoring in the time value of money when comparing scenarios. A dollar today is worth more than a dollar in three years, so even though delaying increases your monthly benefit, the total lifetime value calculation can be tricky depending on your investment returns and life expectancy assumptions.