Working Full-Time at 62: The Social Security Trade-Off You Should Know

Retiring at 62 while continuing to work full-time is technically possible under Social Security rules, but the financial math might not work in your favor. Let’s break down what actually happens to your benefits.

The Basic Rule: Yes, But With Catches

You’re allowed to collect Social Security at 62 and keep your job simultaneously. The Social Security Administration doesn’t prohibit this combination. However, there’s a critical trade-off that most people overlook: if you claim benefits before reaching full retirement age (66 or 67, depending on your birth year) and earn above the income threshold, your benefits get reduced.

Here’s where it gets tricky. For 2025, the SSA income limit sits at $23,400. If you earn anything above that while collecting early benefits, the government withholds $1 from your Social Security for every $2 you earn over the limit.

The Numbers: What Actually Gets Deducted

Suppose you retire at 62 with a monthly Social Security payment of $600 (roughly $7,200 annually). You land a full-time job paying $25,000 per year—that’s $1,600 above the threshold. The SSA would withhold $800 from your Social Security benefits annually ($1 for every $2 over the $23,400 limit).

That means your take-home Social Security drops significantly in your early retirement years, potentially erasing a big chunk of the reason you claimed early in the first place.

The Silver Lining: You Get It Back Later

Here’s the redemptive part: once you reach your full retirement age, the withholding stops, and you don’t lose that money forever. The SSA recalculates your benefits and increases your monthly payment based on the additional months you delayed claiming (in terms of benefit calculation). This adjustment means your eventual benefit amount is higher than it would have been.

The Real Decision

The question isn’t whether you can work at 62 while claiming Social Security—you absolutely can. The question is whether the reduced benefits during those years make sense for your financial situation. If you need the income now and can tolerate smaller Social Security checks temporarily, it works. If you’re working because you want to stay busy, waiting until full retirement age might preserve significantly more lifetime benefits.

Track your benefits anytime through the SSA’s mySocialSecurity platform to monitor how your earnings affect your monthly payments.