When you retire, you can start receiving Social Security benefits as early as age 62 but if you plan to continue working, there are a few rules you need to understand.
What Does Full Retirement Age (FRA) Mean?
Your FRA is when you’re eligible for 100% of your earned Social Security benefit based on your birth year. For decades, it was fixed at age 65 then the FRA was raised in 1983. For those born in 1943 through 1954, the FRA is 66 and scales up to age 67 for everyone born in 1960 or later. To find your FRA, go to https://www.ssa.gov/oact/progdata/nra.html.
“Beginning the month you turn your FRA, there’s no limit on your earnings and your benefit will be recalculated to give you credit for the amount withheld.”
Filing For Social Security Before Your FRA
Known as Early Retirement, you can file for Social Security starting at age 62 no matter what year you were born. However, your benefit will be reduced by a little over one half of one percent for each month you receive Social Security before your FRA. For example:
- If your FRA is 66 your benefit is reduced by 25% at age 62.
- If your FRA is 66 and 2 months your benefit is reduced by 25.83% at age 62.
- If your FRA is 66 and 4 months your benefit is reduced by 26.67% at age 62.
- If your FRA is 66 and 6 months your benefit is reduced by 27.5% at age 62.
- If your FRA is 66 and 8 months your benefit is reduced by 28.33% at age 62.
- If your FRA is 66 and 10 months your benefit is reduced by 29.17% at age 62.
- If your FRA is 67 your benefit is reduced by 30% at age 62.
When You Collect Social Security & Continue To Work
The Social Security Earnings Limit applies to people younger than their FRA who collect benefits and continue to work. For 2024, the earnings limit is $22,320. If you earn more, $1 will be withheld from your Social Security for every $2 above the limit.
If you turn your FRA in 2024 and continue to work while collecting benefits, in the months leading up to your birthday, the earnings limit is $59,520. If you earn more, $1 will be withheld from for every $3 above the limit. Beginning the month you turn your FRA, there’s no limit on your earnings and your benefit will be recalculated to give you credit for the amount withheld.
Before filing early for Social Security, connect with an FRC® trained advisor who can help you look at the pros and cons.
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