How much can i earn at 62 on social security

All financial plans are important, but Social Security benefits play a profound role in preventing elderly poverty and are paid out at an important stage in a worker’s life. With that in mind, it pays to know when you can start receiving your monthly payments and how continuing to work while collecting Social Security will impact your benefits.

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As the Social Security Administration (SSA) points out, it is perfectly fine to work full time and collect Social Security when you turn the eligible-to-collect age of 62. Whether you should, in normal circumstances, is another issue entirely.

With a few exceptions, almost every financial guru will tell you to wait as long as you can to start collecting your Social Security payments. If you choose to draw on your Social Security before you reach your full retirement age (66 or 67 years old, depending on if you were born before or after 1960) and if you earn more than the designated SSA income limits, your benefits will be reduced.

The SSA deducts $1 for every $2 you earn over the $19,560 limit so that you would get $2,180 of your Social Security benefits kept back.

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Using the SSA’s example in its “How Work Affects Your Benefits” publication, if your monthly Social Security payment at 62 years is $600 ($7,200/year) and you intend to make $23,920 for the year, you will get payments withheld for the $4,360 you earn over the $19,560 limit.

However, you will get the money back once you reach full retirement age. At that point, your benefit can be recalculated and your monthly benefit will increase based on the additional earnings.

You can keep track of your benefits by using the SSA’s online platform, mySocialSecurity.

By David Nadelle

September 12, 2022

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About the Author

David Nadelle

David Nadelle is a freelance editor and writer based in Ottawa, Canada. After working in the energy industry for 18 years, he decided to change careers in 2016 and concentrate full-time on all aspects of writing. He recently completed a technical communication diploma and holds previous university degrees in journalism, sociology and criminology. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting for the retail industry.

Ever wonder how much you might receive in Social Security? Use this Social Security benefit calculator to estimate your amount of Social Security benefits. Remember, this is only an estimate. Actual benefits may vary depending on actual work history and income.

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You’ll only know your own amount for sure when you apply, but there are ways to get a sense of it in advance. The quickest and easiest is to use AARP’s Social Security Benefits Calculator or check your online My Social Security account. The latter draws on your earnings record on file with the Social Security Administration; for the AARP calculator, you’ll need to provide your average annual income.

Both tools project what you could collect each month if you start Social Security at age 62, the earliest you can file for retirement benefits; at full retirement age; and at age 70. Between 62 and FRA, Social Security reduces your benefit for filing early; between FRA and 70, it increases your payment as a reward for waiting.

For example, the AARP calculator estimates that a person born on Jan. 1, 1960, who has averaged a $50,000 annual income would get a monthly benefit of $1,338 if they file for Social Security at 62, $1,911 at full retirement age (in this case, 67), or $2,370 at 70. The AARP tool can also give you figures for every age in between, gauge the effect on your benefits of continuing to work and help you budget for your retirement years.

You can also get basic benefit estimates by calling the Social Security Administration at 800-772-1213. But remember, no matter where you get the numbers, they are estimates, not promises. Your actual benefit will vary, perhaps significantly, based on fluctuations in your earnings, cost-of-living adjustments, whether you continue to work after claiming benefits and changes in the Social Security law.

Keep in mind

Social Security sets a cap on how much of your income it takes into account in figuring your benefit. In 2022 the cap is $147,000 (it’s adjusted annually to reflect historical wage trends). Any income above that is not counted in your benefit calculation (and is also not subject to Social Security taxes).