If you’re in your early 60s and still working, Social Security can feel like a moving target. You might be picturing your first check, but also wondering, “If I keep my job, will they cut my benefits?” or “Am I shooting myself in the foot if I claim now instead of waiting?”
On top of that, you may need your paycheck to cover bills, yet you don’t want to leave money on the table for your 70- or 80-year-old self. It’s a lot to juggle.
The good news: the rules are complicated, but they’re not random. If you understand how working interacts with Social Security, you can often turn those extra working years into a bigger, more secure benefit for the rest of your life.
Know how the Social Security earnings test really works
If you claim Social Security before your full retirement age and keep working, the earnings test kicks in. In 2025, if you’re under full retirement age all year, you can earn up to $23,400 from work before any benefits are held back. Above that, Social Security withholds $1 in benefits for every $2 you earn. In the year you reach full retirement age, a higher limit applies: $62,160 in 2025, with $1 held back for every $3 over that amount.
Two key points many people miss. First, this test only counts earned income from work or self-employment, not pensions, IRA withdrawals, or investment income. Second, the money isn’t gone forever. Once you hit full retirement age, your benefit is recalculated to credit you for months when checks were withheld, giving you a higher monthly amount going forward.
After full retirement age, the earnings test disappears. You can earn any amount from work and still receive your full benefit, with later adjustments if new earnings raise your record. Knowing this can keep you from panicking about “losing” benefits when really they’re just delayed.
Use extra working years to fix low or zero years in your record
Your retirement benefit is based on your 35 highest-earning years, adjusted for inflation. If you have fewer than 35 years on the books, maybe you stayed home with kids, had health issues, or worked off the books, Social Security fills the missing years with zeros. Those zeros drag down your average and your check.
Working more years in your 60s, even part-time, can push out old low-income years or zeros and replace them with higher earnings. That’s true whether you’ve already claimed or not. Social Security automatically reviews your record every year and will bump up your benefit if a new year becomes one of your top 35.
This is where working “a little longer” can pay off in a big way. If your 20s or 30s were low-earning, a few solid years in your 60s can raise your lifetime benefit, not just this year’s checks. Log into your online Social Security account and make sure your earnings history is correct. Fixing an error from years ago can also increase your benefit.
Time your claim if you’re still earning strong income
For most people born in 1960 or later, full retirement age is 67. You can claim as early as 62, but your check is permanently reduced, down to about 70% of your full benefit if full retirement age is 67. If you wait past full retirement age, your benefit grows about 8% per year until age 70.
If you’re still working full-time and earning good money, it often makes sense to delay claiming. Your paycheck covers living costs, so you can let your future Social Security grow. A simple example: if your full retirement benefit would be $2,000 a month at 67, claiming at 62 might give you about $1,400, while waiting to 70 could mean roughly $2,480.
Suze Orman has said, “Perhaps no decision is bigger than deciding when to start receiving your Social Security benefit.” If your health is decent and you’re still earning, run the numbers on waiting. Use an online calculator to compare claiming ages and see how your lifetime total changes.
Take advantage of special rules the year you retire
Social Security doesn’t just look at your yearly income. There’s also a “special monthly rule” in the first year you retire. In that year, you can often get full benefits for any month you earn less than a set amount, even if your annual earnings are over the limit.
That matters if you’re planning to leave a job mid-year. Say you work full-time until June, then stop or drop to very part-time. Your annual earnings might blow past the yearly limit, but the monthly rule can still let you collect checks for the months after you slow down. Planning your last day of full-time work and your benefit start month with this in mind can save you from unexpected withholding.
The year you reach full retirement age is also special. Only your earnings before your birthday month count against the higher annual limit. Once you hit that month, the earnings test ends for good. If you’re in that transition window, you may be able to claim a little earlier than you thought without losing much to the earnings test.
Watch how work and Social Security affect your taxes
Even after you clear the earnings test, taxes are still in play. Up to 85% of your Social Security benefit can be taxable, depending on your “combined income” (your other income plus half your benefits).
Right now, if your combined income is between $25,000 and $34,000 as a single filer, or $32,000 to $44,000 as a married couple filing jointly, up to 50% of your benefits may be taxed. Above $34,000 single or $44,000 joint, up to 85% of benefits may be taxable. Working longer or picking up part-time income can push more of your benefit into the taxable zone.
That doesn’t mean you shouldn’t work. But if you’re choosing between, say, taking on extra shifts at 68 or pulling a bit more from an IRA, it’s worth looking at which move leads to less tax on your Social Security. Some people choose to delay claiming while they’re in a higher tax bracket from work, then start benefits after they cut back their hours. You can also have federal tax withheld from your check so you’re not surprised next April.
Coordinate with a spouse or ex-spouse while you keep working
If you’re married or divorced after a long marriage, your work and claiming choices affect more than just you. A current or former spouse may be able to receive up to 50% of your full retirement age benefit as a spousal benefit. A surviving spouse can often receive up to 100% of what you were getting, or what you would have received at full retirement age.
This is why the higher earner’s Social Security decision is so important. If that’s you, continuing to work and waiting to claim can lock in a larger benefit not only for you, but for a spouse later on. Meanwhile, the lower earner might claim earlier, especially if their benefit will always be smaller than half of the higher earner’s amount.
If you’re divorced, you may still qualify for benefits on an ex-spouse’s record if the marriage lasted at least 10 years and other rules are met. Check your own projected benefit and any potential spousal or survivor benefit. Coordinating who claims when, and who keeps working longer, can boost what the household gets over both lifetimes.
Compare expert advice and choose what fits your life
You’ll hear very different opinions from well-known money experts. Suze Orman urges many people to delay if they can, especially if they expect to lean on Social Security for much of their retirement income. That lines up with the math: each year you wait past full retirement age up to 70 can raise your check about 8% for life.
Dave Ramsey takes a very different approach. As he puts it, “Social Security payments die when you die, so you might as well get all you can get as fast as you can get it.” His view makes more sense if you’re already financially set from savings and pensions, don’t expect to live long, or plan to invest the benefit and leave more to your heirs.
There isn’t a one-size-fits-all answer. What you can do is plug in your own numbers, current work income, health, savings, spouse’s situation, into a reputable Social Security calculator and your online account. Look at how claiming at 62, 67, or 70 changes your monthly check and lifetime total. Then decide how much you’re willing to work now to give your future self (and possibly your spouse) more breathing room later.
