Working at FRA (67) while collecting Social Security - hidden advantages and pitfalls?

congrats on the job offer! i'm doing the same thing - retired last yr at 67 but still do contract work. no limits on what u can make after FRA so go for it!!!

There are several pros and cons to consider when working while receiving Social Security at FRA: Pros: - Your benefit can increase if your recent earnings are higher than previous years used in your calculation - Extra income while still getting full SS benefits - Potential for continued retirement plan contributions Cons: - Your SS benefits become more taxable if your combined income exceeds certain thresholds ($25,000 single/$32,000 married) - Higher Medicare Part B and D premiums through IRMAA if your income exceeds about $97,000 (for individuals) - Working might defeat the purpose of retirement for some people Regarding reporting, you don't need to report wages to SSA after reaching FRA - your employer handles this through normal tax reporting. However, if you're self-employed, you'll still need to report your earnings when you file your taxes. The biggest advantage most people don't realize is that if you're earning substantial income, your current earnings might replace lower-earning years in your benefit calculation, potentially increasing your monthly payment slightly.

Yes, SSA will automatically recalculate your benefit each year if you continue working after claiming. If your current earnings are higher than one of the 35 years used in your original calculation, your benefit can increase. This is different from the rules before FRA. Once you reach full retirement age, you get automatic recalculations plus there's no earnings limit to reduce benefits.

my sister worked past 67 and it messed up her taxes BIG TIME!!! her social secruity was taxed at 85% because her income was too high. be careful what you wish for!!

I've been trying to reach SSA for weeks to ask similar questions but can't get through on their 800 number. Always disconnects after 30+ minutes on hold. Any suggestions? Their website doesn't answer my specific questions about working while collecting.

also dont forget if u have employer health insurance u might be able to delay medicare part B and avoid those premiums!!! check with ur HR department!!!

One advantage not mentioned yet: continuing to work may allow you to delay drawing from retirement accounts like 401(k)s or IRAs, giving them more time to potentially grow. This can be a significant benefit for long-term financial planning. Also, regarding Medicare IRMAA surcharges that were mentioned, these are based on your tax return from two years prior. So your 2025 income will affect your 2027 Medicare premiums. If your income later drops when you fully retire, you can file Form SSA-44 for a reduction in IRMAA due to a life-changing event. Finally, if your consulting work is self-employment, remember you'll still pay the full 15.3% FICA taxes on that income even while collecting Social Security.

I'm so confused about this whole topic! When my dad worked after starting his Social Security, he said the extra money he made actually REDUCED his monthly check! But everyone here is saying there's no reduction after FRA? Is this a new rule or was my dad mistaken??? Also, does any of this apply to disability benefits or just retirement? My husband is on SSDI and thinking about trying to work part-time.

Thank you all for the helpful responses! I've learned a lot and have some follow-up questions: 1. For the automatic recalculation that might increase my benefit - does this happen without me needing to contact SSA? 2. For those who mentioned tax implications - is there a calculator anywhere that can help me estimate how much of my SS will be taxable with this additional income? 3. I'm still not clear on Medicare coordination - if I take my employer's health plan, can I drop Medicare Part B entirely or just use it as secondary coverage?