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

This thread has been incredibly helpful! I'm in a very similar situation - turning 67 next year and planning to keep working. One additional consideration I'd add is to check if your employer offers any phased retirement options or flexible arrangements once you hit FRA. Some companies are more willing to negotiate reduced hours or consulting arrangements for experienced workers, which could give you the best of both worlds - some income, lower tax burden, and time to enjoy retirement while still getting those delayed retirement credits until 70. Also, don't forget that Medicare kicks in at 65 regardless of when you claim Social Security, so factor those premium costs into your planning if you're not already on Medicare!

Based on everything shared here, it sounds like you're in a great position! Just to summarize the key points for your situation: 1) No earnings limits at FRA - you can make your $70K and get full SS benefits, 2) The main trade-off is immediate income vs. 24% higher lifetime benefits if you wait until 70, and 3) Tax implications since 85% of your SS will be taxable with that income level. One thing I'd add - consider running the numbers on what your actual take-home would be after taxes if you claim at FRA vs waiting. Sometimes the tax hit on combining high earnings with SS benefits makes the decision clearer. Also, if you have good health and longevity in your family, that 8% annual increase really compounds over time. But if you're worried about policy changes or just want the security of having the money now, claiming at FRA while working is totally legitimate too. Either way, you're not leaving money on the table like people who claim early!

One more thing to consider that I don't think has been mentioned - if you're planning to work until 70 anyway, you might want to look into whether your employer offers a high-deductible health plan with an HSA option. Since you'll be on Medicare already, you can't contribute to an HSA anymore, but if you have one from before 65, you can still use it for medical expenses tax-free. This could help offset some of the tax burden from having both your $70K salary and SS benefits taxed together. Also, some people in your situation consider doing Roth conversions during the gap years between FRA and 70 when they're not taking SS yet - gives you more control over your tax brackets in retirement. Just another angle to think about as you're crunching those numbers!

Great question and really smart of you to research this thoroughly before making the decision! I'm currently 68 and went through this same analysis two years ago. Here's what I wish someone had told me: The math really does favor waiting until 70 if you can swing it financially, especially with your income level. That guaranteed 8% return is hard to beat anywhere else. But there's also a psychological factor - having that SS check coming in while you're still working gives you more flexibility if your work situation changes unexpectedly. One practical tip: consider doing a "test run" with your budget. Calculate what your monthly expenses would be if you were only living on your $70K salary (minus taxes, 401k contributions, etc.) and see how comfortable that feels. If you can live well on just your work income, that makes the case for waiting until 70 much stronger since you're not sacrificing your lifestyle. Also, don't forget that your SS benefit will get annual COLA increases once you start collecting, so that higher base amount from waiting pays dividends every year through cost of living adjustments. The difference compounds over time!