Can I work full-time while collecting Social Security at FRA with no penalty (born in 1960)?

You're in luck! Since you were born in 1960, your Full Retirement Age (FRA) is 67. And yes, once you reach your FRA, the earnings test no longer applies - you can earn as much as you want with no penalty to your Social Security retirement benefits. Prior to FRA, there is an earnings limit ($22,320 in 2025 if you're below FRA for the full year, with $1 in benefits withheld for every $2 over the limit). As for benefit amounts - collecting at your FRA (67) will give you your full benefit amount. If you wait until 70, you'll get an 8% per year increase (24% total) in your benefit amount. So waiting does give you a permanent increase, but it's not technically a "reduction" if you claim at FRA - that's your full benefit.

My bro in law tried collecting early at 62 and BOY was that a mistake with his income! They took back so much $$ it wasnt even worth filing. Better to wait til ur FRA which I think is 67 for you.

I was born in 1959 and went through this exact situation last year. I'll tell you what the SSA rep told me when I finally got through after calling for THREE DAYS STRAIGHT (so frustrating)! Yes, at your Full Retirement Age, which is 67 for you, the earnings test completely disappears. You can make $1 million a year and still get your full SS benefit. No penalties whatsoever. But here's something to consider: even though you can collect at FRA without penalties, your benefit amount increases by 8% for EACH YEAR you delay filing from 67 to 70. That's a guaranteed 24% increase if you wait until 70! If you're still working and don't need the money, you might want to consider waiting. I kept working and started collecting at 67, but sometimes wonder if I should have waited to 70.

Ughhh the earnings test is so confusing. I thought FRA was 65 for everybody? Why do different people have different FRAs? The whole system is needlessly complicated! I attempted to call SSA three times this month to get clarification and either got disconnected or was on hold for 2+ hours. Their customer service is TERRIBLE!!! How is anyone supposed to get answers about their benefits????

To answer the original question more directly, here's what you need to know about working while collecting Social Security: 1) Before FRA: There's an earnings limit ($22,320 in 2025), and SSA withholds $1 for every $2 over that limit. 2) Year you reach FRA: Higher limit applies ($59,520 in 2025 for months before reaching FRA), and SSA withholds $1 for every $3 over that limit. 3) After reaching FRA: NO LIMITS! You can earn any amount without reduction in benefits. Your FRA is 67 (for those born 1960 or later). The confusion might come from the fact that FRA used to be 65, then moved to 66 for people born 1943-1954, and then gradually increased to 67 for those born 1960 or later. As for benefit amounts, collecting at FRA (67) gives you your full benefit. Every year you delay past FRA until 70 adds 8% to your benefit (permanently). Every year you claim earlier than FRA (back to 62) reduces your benefit by about 6.7% per year. Hope this helps!

I was in exactly your situation 3 years ago. The earnings test only applies to EARNED income - so wages and self-employment income. Investment income (dividends, interest, capital gains) and pension payments don't count toward the earnings test limit. Just wanted to clarify that point since others haven't mentioned it specifically.

IMPORTANT: Even after FRA when there's no earnings limit, you should know that receiving Social Security while earning a high salary will likely make up to 85% of your SS benefits subject to federal income tax. So while there's no penalty or reduction in benefits after FRA, the tax implications can be significant if you're still earning $85k plus collecting SS. Not saying you shouldn't do it - just be prepared for the tax impact. I'd suggest talking to a tax professional before you make your final decision.

WAIT! Does anyone know what happens if you're over the limit BEFORE reaching FRA? I heard they take back money but then give it back to you later?? Is that true? So confused about this system!

Just wanted to add my perspective as someone who recently went through this decision process. I'm 62 and was born in 1962, so my FRA is also 67. I've been debating whether to file early or wait. What really helped me was using the SSA's online Break-Even Calculator on their website. It shows you exactly how long you'd need to live to make waiting until 70 "worth it" financially versus claiming at FRA. For most people, if you expect to live past your early 80s, waiting until 70 makes sense mathematically. Also, don't forget that if you have a spouse, your claiming decision affects their survivor benefits too. If you're the higher earner, waiting until 70 maximizes the survivor benefit they'd receive. One more thing - Medicare enrollment is separate from Social Security! You still need to enroll in Medicare at 65 even if you're not claiming Social Security yet. That's a mistake I almost made.

As someone who just turned 60 and is starting to research this myself, I really appreciate this detailed discussion! One thing I'm wondering about - if you decide to wait until 70 for the maximum benefit, can you change your mind and start collecting earlier if your employment situation changes? Or once you make the decision to delay, are you locked into waiting until 70? Also, does anyone know if there are any health insurance considerations while you're waiting? I know Medicare starts at 65, but I'm curious about how that interacts with employer health coverage if you're still working full-time.

As a newcomer to this community, I'm finding this discussion incredibly valuable! I'm 64 and was born in 1960, so like the original poster, my FRA is 67. I've been putting off this decision but need to start planning seriously. One thing I haven't seen mentioned yet is the impact of state taxes on Social Security benefits. While we've talked about federal taxes (up to 85% of benefits can be taxable), some states don't tax Social Security at all, while others do. If you're considering relocating in retirement or working remotely, this could be another factor in your timing decision. Also, I wanted to ask - does anyone know if there are any recent changes to these rules or earnings limits due to inflation adjustments? With everything changing so rapidly economically, I want to make sure I'm working with the most current information. Thanks to everyone who's shared their experiences here - it's really helping me think through my own situation!

As someone who just went through this exact decision process last year (born in 1959, so my FRA was 66 and 10 months), I can confirm what others have said - once you reach your FRA of 67, you can absolutely work full-time and earn $85k with zero penalty to your Social Security benefits! I was in a similar boat - still working and earning good money but wanted to start collecting. The key thing that helped me decide was running the numbers on the "opportunity cost" of waiting. Yes, you get 8% more per year if you wait until 70, but that's 8% of your base benefit amount. For me, three years of collecting benefits at FRA actually came out ahead in total dollars received until I'd be about 82-83 years old. One practical tip: when you do file, you can choose to have federal taxes withheld from your Social Security payments (10%, 12%, 22%, or 24%). Given your income level, you'll definitely want some withholding since up to 85% of your benefits will be taxable. I chose 22% withholding and it's worked out well for avoiding a big tax surprise. Also, don't forget that your Social Security benefit will continue to get annual cost-of-living adjustments (COLAs) regardless of when you start collecting. Last year's 3.2% COLA and this year's 2.5% really add up over time! The peace of mind of having that monthly payment coming in while still working has been worth it for me, even knowing I'm not getting the absolute maximum possible benefit.