Like most things, the answer to that question is complex and varies depending on your situation. However, by the end of this article, you will be able to answer the question for yourself and your loved ones.
What is Social Security?
Signed into law in 1935 as part of the New Deal, the original purpose of Social Security was as a retirement plan for workers aged 65 or older. The program allowed individuals to have continuing income after retirement, and for many, to have a retirement.
How Does Social Security Work?
Social Security is one of the more confusing areas of personal finance for people, and it can be challenging to determine how to handle the decision of claiming your benefits.
At What Age Can You Take Social Security?
There is also an incentive for delaying your benefits until after your full retirement age. You can delay your benefits up until age 70, after which there is no further increase in benefits and thus no reason to delay receiving Social Security.
How are Benefits Calculated?
In calculating your benefits, SSA uses the highest 35 earning years of your working career. This calculation yields your Average Indexed Monthly Earnings (AIME), which they use to calculate your benefits.
Can I work and collect Social Security?
The simple answer is yes, but the complex answer is yes with a caveat. While it is possible to work and collect Social Security, the amount you can earn and the impact on your benefits depends on several factors.
How Much Can You Earn and Still Receive Benefits?
The moment you begin receiving Social Security retirement benefits, the Social Security Administration considers you retired. Whether or not earnings impact your Social Security benefits depends on your age.
Should You Work and Collect Social Security?
Now that you know that you can work and still collect Social Security, the question becomes, should you? As with most things, it depends. Remember that the annual earned income limits only affect your Social Security benefits under full retirement age.
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