Retirement age in the United States determines the amount of Social Security benefit. Although there are two other elements that also change this final amount, age is crucial. With an early retirement age, you run into the problem of having your benefit reduced. On the other hand, if you apply for Full Age Retirement, the Social Security Administration grants you 100% of the money contributed.
So, what happens if you wait until age 70 to collect Social Security? Well, the biggest benefit is that every year worked after age 67 you receive an extra amount in your benefit. But working beyond 70 has no extra benefit, since that is the limit for increasing Social Security. Thus, it would make no sense to continue working after this age. However, there are many people who prefer to continue working.
Working after 70 years of age with Social Security
As we have previously discussed, working after age 70 does not add a single dollar to our Social Security retirement. Therefore, it is best to stop working when you reach that age. However, there are retirees who want to continue working for a variety of reasons. Here are the reasons why people might work after age 70:
Love of work. Stopping working is a negative thing for a large number of people, and there are people who love their work. Many workers feel depression when they retire, so they prefer to continue working. In addition, it is also financially advantageous, since you can work and collect Social Security at the same time.
- Because of a low benefit: There may be the possibility that a person started working late and did not get a good benefit. If this happens before age 70, continuing to work is a good idea to increase income.
- These are the two main reasons to keep working after age 70. But getting a better Social Security cannot be one of the reasons, because it is impossible after that age. Try to improve all the conditions of your retirement before the age of 70. Try to have the maximum possible salary working at least 35 years and apply for your retirement late.
To get a good Social Security benefit this is the best formula. Otherwise, your payment may be too low and in the end you may need to have some extra income. Check out ways to increase your income and always keep track of your benefit status through your SSA account.