Can I work full-time at FRA and still collect Social Security? Earning $70K annually

Good news! Once you reach your Full Retirement Age (FRA), there is NO earnings limit. You can earn as much as you want without any reduction to your Social Security benefits. The earnings limit only applies before you reach FRA. If you're still working and don't need the money right away, waiting until 70 will increase your benefit by 8% for each year you delay after FRA (up to age 70). This is called Delayed Retirement Credits. As for the math to decide between claiming at FRA vs 70, it depends on your life expectancy and financial needs. The break-even point is typically around your early 80s. If you live beyond that, waiting until 70 pays more over your lifetime.

my sister started ss at her FRA and kept working full time making about $65k and she gets her FULL check every month no reductions at all!!! but she does pay more taxes cause of the combo of her work pay + SS benefits. she says its still worth it tho, extra money is extra money right?

I think you're confusing the rules before FRA with after FRA. BEFORE your full retirement age, there's an earnings limit (about $21k in 2023, don't remember exact #). After FRA there is NO EARNINGS TEST!!! You can make a million dollars and still get your FULL Social Security check. The real question is whether you NEED the money now. If not, waiting till 70 gives you an 8% increase for EVERY YEAR you wait after FRA. Thats a GUARANTEED 24% increase if your FRA is 67! Do the math - if your benefit would be $2,500/month at FRA, at 70 it would be $3,100/month FOR LIFE plus bigger COLAs since they're percentage-based. But if you need the $$ now, take it. No penalty for working!

The formula people use for the breakeven calculation is pretty straightforward. Figure out how much SS you'd get monthly at FRA vs age 70. Then calculate how much total SS you'd collect if you start at FRA until a certain age vs starting at 70 until that same age. Example: If your FRA benefit is $2,500/month and at 70 it would be $3,100/month: - Claiming at FRA (let's say 67): $2,500 × 12 × (age-67) - Claiming at 70: $3,100 × 12 × (age-70) The age where these equal out is your breakeven point (usually early 80s). But there's another factor - your tax situation will be different! Working full-time while collecting means more of your SS will be subject to income tax. Up to 85% of your benefits can be taxable depending on your combined income.

When I tried to call SSA to ask about this EXACT SAME THING last month, I was on hold for 2.5 hours and then got disconnected!!! Went through that 3 times before I finally found this service called Claimyr that got me through to an actual person at Social Security. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Their website is claimyr.com - basically they hold your place in line and call you when an agent is available. Worth it just to save the frustration! The agent confirmed there's NO earnings limit at FRA, so you're good to work and collect.

I want to add a bit more detail on the taxation aspect since no one fully explained it. When you're earning $70k AND collecting Social Security, a higher percentage of your benefits becomes taxable: - For single filers with combined income (adjusted gross income + nontaxable interest + 1/2 of SS benefits) between $25,000-$34,000, up to 50% of benefits are taxable - Above $34,000 combined income, up to 85% of benefits are taxable With $70k earnings, you'll definitely hit the 85% taxation threshold. This doesn't mean you lose 85% of your benefits - it means 85% of your benefits are SUBJECT to your normal income tax rate. This is why some higher earners who don't need immediate cash flow often delay until 70 - they avoid the taxation while working, then get higher payments later. But there's NO REDUCTION in your actual benefit amount for working after FRA.

i waited til 70 and my check is almost $1200 more per month than if I'd taken it at 66 (my FRA). Wish I could go back in time and tell my brother the same thing, he took his at 62 and regrets it every month!!

Another thing to consider - if your still working, your ongoing earnings might INCREASE your eventual benefit! SS takes your highest 35 years of earnings. If your current $70k salary is higher than some of your earlier years (after indexing for inflation), you could be replacing lower earning years with higher ones, pushing your benefit up even MORE!!! So you get the 8% per year increase for waiting PLUS potentially higher base calculation from continued work. Double win!

i think u should just take the $$ when u can get it!! who knows what tomorrow brings right? my cousin waited to claim and then passed at 69 never got a penny!! so sad