Can You Take Social Security at 62 and Still Work?
You can take Social Security at 62 and still work if you opt to elect early benefits. However, if you want to return to work before you reach 63, you will have to repay years of benefits if you withdraw your application. However, you can choose to re-apply at a later date. For essential details on repaying your benefits, you should refer to the SSA publication If You Change Your Mind or Elect Early Benefits.
Benefits of taking Social Security at 62
For many Americans, claiming Social Security benefits early is a practical solution. After all, you’ve been paying into the system your whole working life. Moreover, having a guaranteed monthly income is nice! However, many people are worried that Social Security might not be able to keep up with their needs in the future. Many people believe that they can better manage their benefits by investing to avoid this situation.
The benefits of delaying your Social Security benefits may outweigh the risks. Depending on the number of benefits you will receive, the breakeven age for your benefits depends on your assumptions about taxes and opportunity costs. Several social security calculators can help you determine the number of benefits you will receive. If you have a long life expectancy, delaying your benefits may be more beneficial until your full retirement age. Otherwise, you might need the money to make ends meet.
If you’re working, you may be wondering how to maximize your benefits by delaying your benefits. First, you must know that you may lose your help if you choose to retire early. However, you will receive more extensive monthly checks when you reach full retirement age. This will gradually restore your lost benefits. Also, you may be subject to tax on your Social Security benefits if you work outside of retirement.
Impact of taking it early
For those working long enough to meet the eligibility requirements, taking Social Security benefits at 62 and still working may be a good decision. Taking the monthly advantage is often easier than waiting until 70. Still, if you are uncertain about your future health, you may want to consider delaying the transition until after you reach 70. Social Security retirement benefits can provide a substantial monthly income. Here are three reasons why you should consider taking Social Security early.
In some cases, delaying Social Security benefits for a few years may benefit your heirs. For example, if you married a high-earning man, waiting for Social Security benefits until after your spouse’s death could ensure that your wife’s survivor benefit is higher than her husband’s. A three percent increase in income can be a significant difference. While taking benefits early can reduce your monthly benefit, it can also delay your eligibility for Medicare until you reach 65. Taking Social Security early could also mean you need to pay for health insurance.
The tax-advantaged benefits you may have enjoyed while working can disappear once you stop working. Social Security benefits will also be capped, so you’ll need to draw down your savings earlier than you originally planned. Taking Social Security early may not be the best decision for you, so make sure you’ve weighed your retirement lifestyle costs. It’s also important to note that claiming Social Security at 62 and still working will mean losing out on the income you’d have received if you waited until later.
Impact of taking it early on your payout
If you are 62 and still working, the impact of taking Social Security at a younger age than you should is minimal. While the monthly benefits from Social Security are higher when you are younger, they may not be worth it if you’re working to pay down high-interest debt. If you’re not sure how long you’ll live, you may want to wait until you are 70 to start claiming benefits.
While many people want to retire at age 70, the truth is that waiting until 66 is a better plan. If you start collecting Social Security at age 62, you’ll receive 75% of your full-age benefit. A $1,000 monthly benefit would only be worth $750 if you started collecting benefits at age 66. You can also delay signing up until age 70 when most people claim their benefits. The difference is minimal, but it can still make a big difference in your payout.
While you can go back to work at age 63 and still receive Social Security benefits, you’ll have to repay several years of benefits when you start drawing your full advantage. Moreover, you may have to wait several years to be able to begin drawing on your savings again. This is a critical consideration when choosing to spend your money in retirement. In case you’re still working, you should also consider your expected health care costs and the cost of living a comfortable life.
