# Collecting Social Security before age 65 (or 70)
**URL:** https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372
**Category:** Factual Questions
**Created:** [April 29, 2008, 6:04pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372 "2008-04-29T18:04:23Z")
**Posts on this page:** 18
**Page:** 1
### Author:  [@Tastes\_of\_Chocolate](https://boards.straightdope.com/u/Tastes_of_Chocolate)
#### Post date: [April 29, 2008, 6:04pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/1 "2008-04-29T18:04:23Z")
I’m in the lucky group that can’t collect social security until I’m 70. Whee.
I know that if I start collection earlier, any place place 62, I can collect a portion of the full benefits. What are the restrictions on this? Could I start collecting at 62, (with I think 70% of benefits) yet still continue to work full time? I suppose another way to word this is: Do wages earned while drawing social security affect your ability to collect it?
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### Author:  [@Qadgop\_the\_Mercotan](https://boards.straightdope.com/u/Qadgop_the_Mercotan)
#### Post date: [April 29, 2008, 6:10pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/2 "2008-04-29T18:10:13Z")
Not a full answer, but here’s a nifty calculator, that’ll tell you what benefits you get at what age, depending on the year you were born. [http://www.ssa.gov/pubs/ageincrease.htm](http://www.ssa.gov/pubs/ageincrease.htm)
Note that anyone born after 1937 will not get full benefits at retirement unless they’re _older than_ 65 years zero months. Born in 1938, get full retirement at 65 years 2 months, etc.
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### Author:  [@AuntiePam](https://boards.straightdope.com/u/AuntiePam)
#### Post date: [April 29, 2008, 6:49pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/3 "2008-04-29T18:49:22Z")
I started drawing at age 62. I can earn $12,500 a year before it affects my benefits. If I make more than that, my benefits are reduced. Since I work part-time, it’s not an issue.
It’s sort of a gamble, drawing early. If I forego the three years between 62 and 65, I’ve “lost” about $40K. If I’d waited, my monthly payment would be about 30% higher, but it’d take about 10 years to make up the difference. So I’m gambling that I’ll die before age 75. Sort of.
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### Author:  [@ethelbert](https://boards.straightdope.com/u/ethelbert)
#### Post date: [April 29, 2008, 7:02pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/4 "2008-04-29T19:02:36Z")
[QUOTE=AuntiePam]
I started drawing at age 62. I can earn $12,500 a year before it affects my benefits. If I make more than that, my benefits are reduced. Since I work part-time, it’s not an issue.
It’s sort of a gamble, drawing early. If I forego the three years between 62 and 65, I’ve “lost” about $40K. If I’d waited, my monthly payment would be about 30% higher, but it’d take about 10 years to make up the difference. So I’m gambling that I’ll die before age 75. Sort of.
[/QUOTE]
It’s not really a gamble. If you don’t need the money now, save it in an interest bearing vehicle. Those additional monies will lengthen the time it takes to reach the breakeven point.
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### Author:  [@Tastes\_of\_Chocolate](https://boards.straightdope.com/u/Tastes_of_Chocolate)
#### Post date: [April 29, 2008, 7:07pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/5 "2008-04-29T19:07:01Z")
[QUOTE=AuntiePam]
I started drawing at age 62. I can earn $12,500 a year before it affects my benefits. If I make more than that, my benefits are reduced. Since I work part-time, it’s not an issue.
[/QUOTE]
What is the discount rate, for earnings over $12,500? Being the government, I’m going to assume it’s not a one-to-one reduction.
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### Author:  [@samclem](https://boards.straightdope.com/u/samclem)
#### Post date: [April 29, 2008, 10:38pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/6 "2008-04-29T22:38:04Z")
[QUOTE=Tastes of Chocolate]
What is the discount rate, for earnings over $12,500? Being the government, I’m going to assume it’s not a one-to-one reduction.
[/QUOTE]
Big time, I think. At 62, it’s 3-1.
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### Author:  [@TimeWinder](https://boards.straightdope.com/u/TimeWinder)
#### Post date: [April 29, 2008, 11:04pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/7 "2008-04-29T23:04:37Z")
[QUOTE=Tastes of Chocolate]
I’m in the lucky group that can’t collect social security until I’m 70. Whee.
[/QUOTE]
What group is that? I thought 67 was the highest for anybody.
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### Author:  [@GilaB](https://boards.straightdope.com/u/GilaB)
#### Post date: [April 29, 2008, 11:07pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/8 "2008-04-29T23:07:20Z")
Yeah, the link above has the youngest group in its drop-down menu as born in 1960 or later, and if you choose that option, it gives an eligible age of 67. I’m not holding my breath that that’s how it’ll stay until I’m eligible (I should be so lucky that it even exists!), but I don’t think there’s an age group not eligible until 70 right now.
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### Author:  [@The\_Them](https://boards.straightdope.com/u/The_Them)
#### Post date: [April 30, 2008, 8:34am UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/9 "2008-04-30T08:34:36Z")
Kids will be born and finish grad school before I’m 67. Or 65. And I get Social Security, no questions asked (anymore). A real generous amount, too. ☹
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### Author:  [@Tastes\_of\_Chocolate](https://boards.straightdope.com/u/Tastes_of_Chocolate)
#### Post date: [May 1, 2008, 8:20pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/10 "2008-05-01T20:20:53Z")
[QUOTE=samclem]
Big time, I think. At 62, it’s 3-1.
[/QUOTE]
Is that $3 earned = $1 SS lost, or the other way around.
As for age 70? Looking at the link above, it looks like I had faulty info. Sorry about that.
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### Author:  [@samclem](https://boards.straightdope.com/u/samclem)
#### Post date: [May 1, 2008, 11:35pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/11 "2008-05-01T23:35:23Z")
[QUOTE=Tastes of Chocolate]
Is that $3 earned = $1 SS lost, or the other way around.
.
[/QUOTE]
NOpe. I just got my statement about a month ago, and since I’m 64 this year, I"m watching this pretty closely.
Let me rephrase what I said, this time reading from my latest SS info.
> [@](#):
>
> In the years before you reach full retirement age, $1 in benefits will be deducted for each $2 you earn above the limit($13,500 in 2008).
> In the year you reach full retirement age, $1 in benefites will be deducted for each $3 you earn above the annual lilmit(36,120 in 2008) until the month you reach full retirement age. **After that, your benefits will not be reduced, no matter how much you earn.**
Example: If I make $40K/year and chose to retire at 62, and I continue working, if I still worked and made my $40K salary, the SS would take away from my retirement benefits _half_ of the money I earned over the $13.5K.
So, esentially, they would not pay me any retirement benefits if I continued to work and make that much.
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### Author:  [@3acresandatruck](https://boards.straightdope.com/u/3acresandatruck)
#### Post date: [May 2, 2008, 12:45pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/12 "2008-05-02T12:45:57Z")
[QUOTE=samclem]
NOpe. I just got my statement about a month ago, and since I’m 64 this year, I"m watching this pretty closely.
Let me rephrase what I said, this time reading from my latest SS info.
Example: If I make $40K/year and chose to retire at 62, and I continue working, if I still worked and made my $40K salary, the SS would take away from my retirement benefits _half_ of the money I earned over the $13.5K.
So, esentially, they would not pay me any retirement benefits if I continued to work and make that much.
[/QUOTE]
Does this apply only to earned income? Does unearned income (like pensions, interest, dividends, etc.) kick in the same kind of benefit reduction?
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### Author:  [@samclem](https://boards.straightdope.com/u/samclem)
#### Post date: [May 2, 2008, 11:28pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/13 "2008-05-02T23:28:40Z")
[QUOTE=3acresandatruck]
Does this apply only to earned income? Does unearned income (like pensions, interest, dividends, etc.) kick in the same kind of benefit reduction?
[/QUOTE]
My Social Security info only uses the word “earned income” when referring to my analysis, but don’t plan your life on what I say. Call them.
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### Author:  [@3acresandatruck](https://boards.straightdope.com/u/3acresandatruck)
#### Post date: [May 3, 2008, 3:30pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/14 "2008-05-03T15:30:17Z")
[QUOTE=samclem]
My Social Security info only uses the word “earned income” when referring to my analysis, but don’t plan your life on what I say. Call them.
[/QUOTE]
Thanks…this answer’s fine for now, as there are still plenty of years to pass, and the rules may change before I have a chance of getting a dime.
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### Author:  [@AuntiePam](https://boards.straightdope.com/u/AuntiePam)
#### Post date: [May 3, 2008, 3:55pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/15 "2008-05-03T15:55:32Z")
FWIW, I have two private pensions – my Social Security isn’t reduced.
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### Author:  [@iwakura43](https://boards.straightdope.com/u/iwakura43)
#### Post date: [May 3, 2008, 8:50pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/16 "2008-05-03T20:50:35Z")
“Full retirement benefits” at age 67 or before is something of a misnomer. If you delay receiving your retirement benefits past the “retirement age,” your benefits [continue to increase](http://www.ssa.gov/retire2/delayret.htm), substantially, until age 70. If you were born 1943 or later, your benefits increase 8% a year after age 67–that’s a lot more money! So much that insurance companies are starting products which will more or less loan you money to let you hold off on collecting benefits for a couple more years. You make money, the insurance company makes money… and the government pays more in the long run.
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### Author:  [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)
#### Post date: [May 4, 2008, 12:39am UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/17 "2008-05-04T00:39:44Z")
Another thing most people are unaware of, is you can change your mind after you have already been collecting reduced benefits at age 62. All you have to do is file a [Form 521](http://www.ssa.gov/online/ssa-521.pdf) (PDF) with Social Security, and repay all the benefits you have received. Then you can refile, and get the full benefit at whatever your full retirement age is. This raises the possibility that you could receive reduced benefits for some years and throw them all into a CD and collect interest, then repay all the reduced benefits and refile for full benefits at your age of full retirement, and keep a nice chunk of interest.
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### Author:  [@flex727](https://boards.straightdope.com/u/flex727)
#### Post date: [May 4, 2008, 2:51pm UTC](https://boards.straightdope.com/t/collecting-social-security-before-age-65-or-70/447372/18 "2008-05-04T14:51:42Z")
[QUOTE=iwakura43]
… and the government pays more in the long run.
[/QUOTE]
Why do you say this? Do you think the SSA is incapable of making the actuarial calculations properly?