Starting Social Security at 62: Working Full Time While Collecting Benefits

The Short Answer: Yes, But With Important Caveats

If you’re wondering whether you can retire at 62 and still work full time, the answer is straightforward—you legally can. The Social Security Administration explicitly permits individuals to collect benefits while maintaining full-time employment once they reach the eligible collection age. However, the more relevant question isn’t whether you can, but whether you should.

Understanding the Earnings Penalty

Here’s where the financial picture becomes more complex. If you begin collecting Social Security before reaching your full retirement age (either 66 or 67, depending on your birth year), the SSA implements what’s known as an earnings test. This means if your work income exceeds a specific threshold, your benefits get reduced.

For 2025, that threshold stands at $23,400 annually. The penalty structure is steep: Social Security withholds $1 in benefits for every $2 you earn above this limit. To illustrate with concrete numbers: suppose you’re collecting $600 monthly ($7,200 yearly) at age 62 and plan to earn $25,000 through work. The additional $1,600 over the limit would trigger an $800 annual benefit reduction—a significant hit to your expected income.

The Long-Term Recalculation Advantage

The temporary reduction isn’t the complete story. When you eventually reach full retirement age, your benefit undergoes recalculation. The SSA acknowledges those withheld amounts and increases your monthly payment accordingly, crediting the additional work years and lifetime earnings. This means the early reduction functions more as a delay than a permanent loss—you essentially recover the forgone benefits through higher future payments.

Making the Decision

Financial advisors typically recommend delaying Social Security collection as long as reasonably possible, citing the higher lifetime payouts from waiting. Starting at 62 while working full time accelerates your benefit collection timeline but simultaneously reduces each monthly payment due to the earnings test. The optimal choice depends on your personal circumstances: health status, life expectancy expectations, total retirement savings, and income requirements.

Monitoring your benefits through the SSA’s online mySocialSecurity platform allows you to track how work income affects your specific situation, providing clarity as you plan your retirement transition.