Working while collecting Social Security: The 'slow fade' to retirement more people are choosing

Core Insights - The trend of claiming Social Security benefits while still working is increasingly common, with 40% of individuals combining work and benefits for some period [1][3] - Social Security was originally designed for those no longer in the workforce, yet many households over 65 now report earnings from jobs alongside Social Security income [3][4] Group 1: Demographics and Earnings - More than two-thirds of individuals who work after claiming benefits are low earners who claim early, typically working part-time to supplement their income [4] - The remaining third consists of higher earners who claim benefits around their full retirement age and often continue to work full-time, with their combined income exceeding pre-claiming levels [4] Group 2: Social Security Benefits and Work - Individuals can start claiming Social Security as early as age 62, but benefits can be reduced by up to 30% compared to the amount at Full Retirement Age (FRA), which is 67 for those born in 1960 or later [6] - Delaying benefits until age 70 can result in an approximate 8% increase in benefits for each year of delay, with credits ceasing to accrue after age 70 [7] Group 3: Implications of Working After Claiming - Continuing to work after claiming Social Security benefits before reaching FRA can lead to temporary withholding of benefits if earnings exceed a certain threshold, approximately $23,000 [8]