Taking SS at 62 while working part-time: Smart strategy or benefit reduction trap?

I did exactly this last year and it's worked out pretty well for me. Yes, SSA does withhold $1 for every $2 you earn above the annual limit (which will be $22,320 in 2025 I believe). The calculations can get confusing, but I found keeping my income just under that threshold works best. The biggest advantage is I don't have to touch my 401k yet. The monthly check plus my part-time income covers my basic expenses. Just make sure you understand that your benefit is permanently reduced by taking it early - that 30% reduction is for life.

This strategy can work well for some people, but there are several factors to consider: 1. The reduction for claiming at 62 is permanent - your benefit will always be 30% lower than your FRA amount 2. The earnings limit ($22,320 for 2025) applies until you reach your Full Retirement Age 3. Any benefits withheld due to excess earnings aren't truly lost - they get added back after you reach FRA in the form of a slightly higher monthly benefit 4. Consider your longevity - if you expect to live well into your 80s or beyond, waiting until FRA or even age 70 often provides more lifetime benefits 5. Taxation - up to 85% of your SS benefits may be taxable depending on your combined income Every situation is unique, so what works for some might not be optimal for you. Have you run calculations for different scenarios?

my sister started ss at 62 and worked at walmart part time. she said its REALLY IMPORTANT to track ur earnings cuz if u go over they take back money and its a huge mess!!!! she went over by like $600 one year and had to pay back way more than that. dont know why the system is so complicated!!!!

I take my SS early and then lost half of it when I took an extra shift at my nursing job. The whole system is rigged against working people if you ask me. They don't even tell you clearly about these limits when you sign up! I had to learn the hard way when they just STOPPED my payment one month with barely any notice. Still mad about it.

Does anyone know if the $22,320 limit is before or after taxes? And does it include things like 401k contributions or just take-home pay? Im planning to do this next year two but all the SS rules are confusing me

I'm learning so much from everyone's responses - thank you! One more question: if I start taking SS at 62 and work part-time, but then stop working completely at 65, would my benefit amount ever increase? Or am I permanently stuck with the reduced amount?

i heard somewhere that if u work while getting ss that it can actually INCREASE ur benefit later on. is that true or just a rumor?? 🤔

Why bother with all this complicated math??? Just enjoy life and take the money when you can get it! No one knows how long we have anyway. My neighbor waited until 70 to maximize his SS benefit and then dropped dead 3 months later. All that waiting for nothing!

One often overlooked aspect of taking SS early while working part-time is the effect on Medicare premiums later. If your combined income (SS benefits + work income + other income) exceeds certain thresholds, you could pay higher Medicare Part B and D premiums when you enroll at 65. This is called IRMAA (Income-Related Monthly Adjustment Amount). It's based on your tax return from two years prior, so work income at 63-64 could affect your Medicare costs at 65-66. Worth factoring into your calculations!

As someone who just went through this decision process myself, I wanted to share a few practical tips that helped me navigate the early SS + part-time work strategy: 1. **Set up quarterly income tracking** - Don't just rely on annual totals. I check my earnings every 3 months to make sure I'm on track to stay under the limit. It's much easier to adjust your work schedule mid-year than deal with overpayments later. 2. **Consider seasonal work patterns** - I found that working more hours in Q1 and Q2, then scaling back in Q3-Q4 helps me maximize earnings while staying under the annual limit. Some employers are flexible with this arrangement. 3. **Keep detailed records** - SSA may ask for proof of your earnings, so save all pay stubs, W-2s, and any documentation about your work hours. I learned this the hard way when they questioned my reported income. 4. **Factor in state taxes** - Depending on your state, your SS benefits + work income might push you into a higher tax bracket. Some states don't tax SS benefits at all, while others do. The strategy has worked well for me so far - I get the security of monthly SS income plus the flexibility of part-time work. Just make sure you're prepared for the administrative side of tracking everything!

I'm in a similar boat - turning 62 in a few months and really torn about this decision. Reading through everyone's experiences has been eye-opening, especially the complications around tracking earnings and potential Medicare premium impacts down the road. One thing I'm still unclear on: if I take SS at 62 and work part-time staying under the earnings limit, but then my spouse continues working full-time with a decent salary, does their income affect my Social Security benefits at all? Or is the earnings test only based on MY individual earnings? Also, has anyone here dealt with employers who weren't familiar with the SS earnings limits? I'm worried about accidentally being scheduled for too many hours by a manager who doesn't understand these restrictions. Wondering if it's better to be upfront about the limitations from day one or handle it more quietly. Thanks to everyone sharing their real-world experiences - this is exactly the kind of practical advice you can't get from the SSA website!

I'm 61 and have been researching this exact scenario for months! One thing I haven't seen mentioned yet is how this decision affects spousal benefits. If you're married, taking your SS early can impact when and how much your spouse can claim on your record. Also, I'd recommend calling SSA directly to get a personalized benefit estimate - their online calculators are helpful but talking to an actual representative can clarify some of the more complex scenarios. Another consideration: if you have any debt or are supporting adult children, the guaranteed monthly income from SS (even reduced) might provide more peace of mind than waiting for the larger amount. I've seen too many people's retirement plans derailed by unexpected expenses or market downturns that forced them to tap retirement accounts earlier than planned. The part-time work + early SS strategy seems most successful for people who can find flexible employers willing to work within the earnings limits. Have you already identified potential part-time opportunities, or are you still exploring what's available in your field?