Working while collecting Social Security at FRA (67) in NJ - how will it affect my benefits?

Good news! Once you reach your full retirement age (FRA) of 67, the SSA earnings test no longer applies. This means you can earn any amount from working without having your Social Security benefits reduced. Working while collecting benefits after FRA actually has two potential advantages: 1. You'll continue adding to your earnings record, and SSA will automatically recalculate your benefit annually to see if your additional earnings increase your monthly amount. 2. For tax purposes in NJ, there's extra good news - New Jersey doesn't tax Social Security benefits at all (though federal taxes may still apply depending on your combined income). The only thing to watch is that if your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds certain thresholds ($25,000 for individuals or $32,000 for married filing jointly), up to 85% of your benefits could be subject to federal income tax.

Be careful with the advice above!! I started collecting at my FRA last year, kept working part-time, and my first check was LOWER than what the SSA website estimated. When I called (took 3 DAYS to get through), they said something about my recent earnings and benefit calculations. I still don't understand what happened!!! 😤 And DEFINITELY check with a tax professional. The federal tax stuff is COMPLICATED. I ended up owing $700 more than I expected last year because I didn't withhold enough for taxes on my SS benefits!

my mom works 20hrs at walmart while getting SS in nj. shes 70. no problems with her checks. they come like clockwork same amount. but yea federal taxes still happen

I've been working part-time and collecting Social Security in NJ for almost 3 years now (I'm 70). The biggest benefit is that each year of substantial earnings can replace a lower-earning year in your top 35 years that SSA uses to calculate your benefit. In my case, my benefit went up about $34/month after my first additional year of work. One tip: Set up a "my Social Security" account online if you haven't already. It shows exactly how each year of earnings affects your benefit calculation. Regarding NJ specifically - no state tax on Social Security is great, but remember that your work income is still subject to all the usual NJ state income taxes.

WRONG INFO being shared here!! The earnings limit DOES still apply the year you reach full retirement age UP UNTIL the month you hit FRA. So if you turn 67 in October 2025, the earnings limit applies January through September 2025! In the months before you reach FRA in that year, the 2025 limit is $56,520 and they deduct $1 for every $3 you earn above that limit. After you hit your FRA month, then yes, no more limits ever.

Anyone try to call the Social Security office lately? I gave up after being on hold for 2 hours trying to ask about this exact same question. They're impossible to reach these days!

what about Medicare? don't you have to sign up for that at 65 even if you're still working? I'm so confused about all this stuff!!! 😫

does anybody know if they count rental income? my aunt gets social security but also rents out her basement apartment

To answer your original question about increasing benefits by working longer: Each year the SSA automatically reviews your record and recalculates your benefit if your recent earnings are higher than one of your previous 35 highest years. The increase varies based on your earnings history, but it's typically modest - perhaps 0.5-1.5% per additional year of substantial earnings. For someone with a $2,000 monthly benefit, that might mean an extra $10-30 per month for each additional year. Since you'll be working part-time, the increase would be on the lower end of that range, but still beneficial over the long term since benefits receive annual cost-of-living adjustments.

As someone who recently went through this exact transition in NJ, I can confirm what others have said - once you hit FRA (67), there are no earnings limits on your Social Security benefits. I'm a part-time bookkeeper now at 68 and my benefits haven't been reduced at all. One thing I'd add is to make sure you understand the timing if you're planning to claim benefits right when you turn 67. If your birthday is early in the year, you might want to consider waiting a few months to claim so you can see how your part-time income affects your tax situation before adding Social Security to the mix. Also, since you're in healthcare, check if your employer offers any retirement health benefits or if you'll need to transition to Medicare. The coordination between employer insurance and Medicare can be tricky, especially if you're working reduced hours. The "my Social Security" account that Aisha mentioned is really helpful - you can run estimates with different claiming dates and see projections of how continued earnings might affect your benefit amount.

As a dental hygienist myself who made this transition two years ago in Pennsylvania (similar tax situation), I wanted to add a few practical tips: 1. Talk to your current employer about part-time options BEFORE you claim Social Security. Some dental practices are very flexible with reduced schedules for experienced hygienists, while others prefer full-time only. Knowing your work situation first will help you plan better. 2. Consider timing your claim strategically with your work schedule. I waited until July to claim benefits so I could see how my spring tax situation looked with just work income, then added Social Security for the second half of the year. 3. Keep detailed records of your work earnings throughout the year. Even though there's no earnings limit after FRA, you'll want accurate numbers for tax planning and to track how your continued work affects your future benefit calculations. 4. If you're like me and enjoy the work but want less stress, part-time hygiene work can be really rewarding! You maintain your skills and professional connections while having more flexibility. The transition has worked out great for me - I work 3 days a week, get my full Social Security benefits, and actually feel less financial stress than when I was working full-time and worrying about retirement savings.

Just wanted to add one more consideration that hasn't been mentioned yet - delayed retirement credits! Even though you're planning to claim at your FRA of 67, if you can afford to delay claiming Social Security while working part-time, your benefit will increase by 8% per year until age 70. So if your full benefit at 67 would be $2,000/month, waiting until 70 would give you about $2,480/month for life (plus all future cost-of-living adjustments on that higher base). With part-time income from dental hygiene work, you might be able to bridge those 3 years and significantly boost your lifetime Social Security income. Of course, this only makes sense if you're healthy and expect to live well into your 80s or beyond. But given that you're already thinking about working part-time, it might be worth running the numbers on delaying your claim while earning that part-time income. The break-even point is usually around age 82-84, depending on your specific benefit amount. Just another option to consider as you plan this transition!