How Working in Retirement Affects Social Security

How Working in Retirement Affects Social Security

First monthly Social Security check recipient Ida May Fuller Fuller was the first Social Security beneficiary to receive a recurring monthly payment (beginning Jan. 31, 1940). [Courtesy of USA Today]
First monthly Social Security check recipient Ida May Fuller Fuller was the first Social Security beneficiary to receive a recurring monthly payment (beginning Jan. 31, 1940). [Courtesy of USA Today]

(USA Today) – Retirement has become a foreign concept for a growing number of Americans.

According to a recent survey commissioned by the Federal Reserve, more than half of respondents aged 60 years or older said they plan to work in retirement.

Meanwhile, a separate study by the Government Accountability Office found that “62 remains the most prevalent age to claim Social Security benefits.” In other words, the majority of Americans are taking Social Security benefits as early as possible.

If you’ve read much about Social Security, you know that these two points are potentially in conflict. Specifically, if you claim benefits at age 62 but continue working, your benefits could be reduced as a result of your earnings.

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