The Social Security Rule That Shocks Older Workers

Group 1 - Many older workers are unaware of the rules surrounding Social Security, which can lead to unexpected financial consequences [1][3] - There is a specific rule regarding the impact of working while collecting Social Security benefits that is often overlooked [3][4] - Individuals can claim Social Security benefits at age 62, but working while receiving these benefits can result in reduced payments if they have not reached their full retirement age (FRA) [4][6] Group 2 - The FRA is 67 for those born in 1960 or later, allowing unlimited earnings without affecting benefits once reached [4] - Before reaching FRA, benefits are reduced by $1 for every $2 earned above $23,400, or $1 for every $3 earned above $62,160 if FRA is reached during the year [7] - Understanding these work rules is crucial for retirement planning to avoid financial shocks from unexpected reductions in benefits [8]