Eligibility for Social Security Retirement Benefits
The earliest you can begin receiving Social Security retirement benefits is age 62, not 60. Claiming benefits before your full retirement age, which is 67 for those born in 1960 or later, results in a permanent reduction to your monthly benefit amount.
Impact of Claiming Early
Starting benefits at age 62 means a lower monthly payment for life compared to waiting until your full retirement age. For example, if your benefit at full retirement age would be $1,500, claiming at 62 could reduce it by about 30% to around $1,050 per month.
Working While Receiving Benefits Before Full Retirement Age
If you claim Social Security benefits before reaching your full retirement age and continue to work, your benefits may be reduced based on an annual earnings limit. In 2025, if you are under full retirement age for the entire year, $1 in benefits will be deducted for every $2 you earn above $23,400.
For those reaching full retirement age within the year, a different earnings limit applies for the months prior to reaching that age ($62,160 in 2025), with $1 deducted for every $3 earned above the limit. Once you reach your full retirement age, there is no earnings limit, and your benefits are not affected by your income.
What Happens to Withheld Benefits?
Benefits withheld due to exceeding the earnings limit are not lost. At your full retirement age, the Social Security Administration (SSA) recalculates your monthly benefit amount to account for the benefits that were withheld, resulting in a higher monthly payment going forward.
How Continued Work Can Affect Your Benefits
Working can potentially increase your Social Security benefits. The SSA calculates your benefit based on your highest 35 years of earnings. If your current earnings are higher than one of your previous 35 years, your benefit amount may be increased through a recalculation.
Verifying Your Earnings Record
It is important to check your Social Security Statement regularly to ensure your earnings are reported correctly. You can create a 'my Social Security' account on the Social Security Administration website to review your earnings history and benefit estimates. Accurate records are crucial for correct benefit calculation.
Comparison of Claiming Options
| Feature | Claiming at 62 (Working Full-Time) | Claiming at Full Retirement Age (67) | Delaying until 70 (Working Full-Time) |
|---|---|---|---|
| Benefit Reduction | Permanent reduction | No permanent reduction | Permanent increase (delayed retirement credits) |
| Earnings Limit | Applies until full retirement age | No limit | No limit |
| Benefit Recalculation | Possible due to earnings or withheld benefits | Possible due to high earnings years | Possible due to high earnings years |
| Immediate Income | Yes, subject to earnings limit | No | No |
| Long-Term Impact | Lower lifetime monthly payment, potential for higher payment later | Standard maximum monthly payment | Highest possible monthly payment |
Additional Considerations
Beyond earnings limits, factors such as your health, other sources of income, and potential spousal benefits should influence your decision on when to claim Social Security. Your individual circumstances will determine the best claiming strategy for you.
Conclusion
While you cannot claim Social Security benefits at age 60, you can start at 62 while working full-time. However, you will be subject to earnings limits until you reach your full retirement age, which could temporarily reduce or stop your benefits. These withheld benefits contribute to a higher payment later. The decision of when to claim requires careful consideration of your financial situation, health, and future income goals.
