Do Retirement Gigs Increase Your Social Security Benefits?

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Photo by kenary820 from Shutterstock

Before talking about whether retirement gigs increase your Social Security benefits or not, you may be asking, “Can you work after getting retired?”, and if so, “How many hours can you work?” These are legitimate questions, since once you officially retire, you start getting your Social Security, and, therefore, there are some factors to keep in mind.

First, claiming your retirement benefits doesn’t limit your possibility of getting a retirement job, not even the number of hours. But here’s an important thing you should know: if you leave the workforce at the earliest opportunity, which is the age of 62, and then decide to get back to work, your pension check will likely be reduced until you reach full retirement age.

This is because there is a limit on how much money you can earn while also receiving Social Security benefits in early retirement.

Once you’re 66 or 67 (depending on the year you were born), the rule no longer applies, which means you can work as many hours as you want without being penalized. However, what may happen is that the extra income could move you into higher tax brackets and thus into higher charges for Medicare if you’re a beneficiary of this federal health insurance.

Although traditionally many Americans have considered retirement age to be 65, for those born in 1960 or later, the full retirement age is actually 67. Still, you can claim your Social Security benefits as early as you reach 62 or as late as you reach 70. For those born from 1943 to 1955, the full retirement age is 66.

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