Still Employed at 70? The Smartest Moment for High Earners to Claim Social Security

"That said, claiming early comes at a cost. Waiting increases your monthly payout, which can be especially valuable if your retirement savings feel light and you expect Social Security to be a meaningful part of your long-term income plan. You receive your full benefit once you reach full retirement age, which falls between 66 and 67 depending on your birth year. And if you delay past that point, the Social Security Administration boosts your benefit by 8 percent per year."

"If you're still working at 70, it may feel logical to keep postponing Social Security. But the delayed-retirement credits that increase your benefit stop accruing once you hit 70. In other words, there's no financial advantage to waiting any longer. The SSA won't force you to file at 70, but since your benefit can't grow beyond that point, there's no upside to leaving money on the table."

"Working full time also doesn't block you from collecting benefits. You can earn a paycheck and receive Social Security at the same time. Before full retirement age, you'd be subject to the earnings test, which can temporarily withhold part of your benefit if your income exceeds the annual limit. At 70, that earnings test disappears. You're comfortably past full retirement age, so even a high salary won't reduce your monthly Social Security payment. You can work, earn, and collect your full benefit simultaneously."

Social Security benefits can be claimed starting at age 62, but claiming early reduces monthly payments. Full benefits arrive at full retirement age, between 66 and 67 depending on birth year, and delaying past full retirement age earns delayed-retirement credits of about 8% per year. Those credits stop at age 70, so delaying beyond 70 yields no additional benefit. Working does not prevent collecting benefits, though an earnings test before full retirement age can temporarily withhold benefits if income exceeds limits. At 70 the earnings test no longer applies, allowing full benefit collection while still earning income. Understanding these rules helps optimize claiming strategy.

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