Social Security Claiming Trends: Why Retirement Isn’t Always Retirement
In this week’s Fastest 4 Minutes in Finance, a new report shows claiming Social Security does not necessarily signal retirement for millions of Americans.
40% of Americans Keep Working After Claiming Benefits
A recent report from the Center for Retirement Research at Boston College found that 40% of Americans work at some point, after claiming their Social Security benefit. Often they do it for several years.
The report found that more than two-thirds of those who claim and still work, are lower lifetime earners who claim at age 62 and then work part-time, so they may struggle to delay claiming. But the rest are higher earners who often work full time after claiming near the full retirement age, suggesting they may be able to further delay claiming.
Labor Force Participation: Working at 62, 67, and Even 70
Here’s a figure from the report. It shows labor force participation rates by age from 2024.
You can see, 59% of Americans are still working at age 62. And, 26% are still working at age 70.
In fact, Yahoo Finance reports that 7% of the total workforce is over 65. That’s more than 4 times the number in the mid 80’s.
Financial Independence: Choosing to Work vs. Needing to Work
While some work because they have to, others work because they want to. Knowing the difference, and what you should do, depends on whether or not you are financial independent, meaning you have enough assets, that produces enough income on top of Social Security, and other income sources, that will sustain your lifestyle.
Determining when to claim Social Security is big part of retirement planning for our clients at GenWealth.
Social Security Claiming Ages: 62, 67, or 70?
For those born in 1960 or later, full retirement age is 67. But that’s a little misleading, because it suggests that is how old you need to be to receive Social Security, and that it’s the biggest check you will receive.
You can actually claim Social Security as early as age 62, but the benefit will be less. In fact, it’s about 6% less per year, than your full benefit would be at 67. And, if you delay taking your benefit beyond 67, the benefit grows about 8% annually until age 70. That is the largest benefit you can receive.
Earnings Limits: Working While Receiving Social Security
And if you are considering working while taking Social Security, you’ll want to be careful. Social Security limits the amount you can earn. In 2026, if you earn more than $24,480, Social Security will withhold $1 from your benefit for every $2 you earn above that.
They will return this to you after you reach full retirement age, but it won’t be in a lump sum, so it may take a while to recoup the lost dollars.
Why Social Security Must Fit Into a Financial Plan
We would always urge you not to make Social Security decisions in a vacuum. Make the decision as a part of your overall plan for financial independence, built with a trusted financial advisor.
Securities are offered through LPL Financial, Member FINRA/SIPC. GenWealth Financial Advisors is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial.
