If still working should you take Social Security Benefits at 62

[Fiendish Thingy]

4. If you continue working while collecting SS, your benefits will be reduced

Before you reach full retirement age (67 for most folks now), there is a cap on wages you can earn before benefits are reduced. When I retired five years ago, it was something like $17,000/yr.

The formula is something like, for every $2 you exceed the cap by, your benefit is reduced by $1. So, if you made $20,000/yr after starting SS at age 62, your benefits would be reduced by $1500/yr. If you earned $40,000/yr, then your benefit would be reduced by $11,500, assuming a $17,000 income cap (which has probably been adjusted for inflation). And that is with taking an already reduced benefit at age 62.

If SS will be your only retirement income, you should definitely wait until full retirement age to take benefits, if your health permits.

Otherwise, if you can make ends meet without working and just drawing from various retirement funds, including SS, then definitely retire at 62.

IMO, taking early SS and continuing to work full time just doesn’t make sense.