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While you can collect Social Security at age 62 and continue working, the real question is whether you should. Depending on your age and how much you earn, your benefits may be temporarily reduced.

In this episode of Money Wisdom, Nicholas J. Colantuono, CFP® and Eric Hogarth, CFP® explain how working while collecting benefits can impact your long-term retirement strategy.

How Working Affects Your Social Security Benefits

You can trigger Social Security as early as 62, but it may affect your lifetime benefit and retirement income. If you claim before your full retirement age and you’re still earning income, the Social Security Administration may temporarily reduce your benefit.

For 2026, if you earn above $24,480, Social Security will withhold $1 in benefits for every $2 over that limit. Once you reach full retirement age, however, you can work and earn as much as you want without reducing your benefit.

Need help making the right Social Security decisions? Get your free Social Security Simplified guide by texting “SOCIAL” to 800-757-0436.

Social Security as One Piece of the Puzzle

Every year you wait to take Social Security, your monthly benefit grows. However, you must also factor your life expectancy, monthly expenses, and overall income plan into your claiming decision.

Ultimately, Social Security is just one piece of a solid retirement income strategy. This benefit was never designed to be 100% of your income. That’s why it’s important to have a plan for where your money will come from throughout retirement.

Building a Retirement Income Plan

Retirement income typically comes from Social Security, possibly a pension, and your savings. Whether you work because you want to or because you have to depends on whether you have enough money to retire. Knowing that answer starts with understanding what retirement will actually cost.

If you’re still working and have not reached full retirement age, you may not need Social Security yet. If your income covers your expenses, you can probably wait to claim it. If you do need additional income, Social Security is often the most straightforward source to tap. But keep in mind the possible penalties that can apply.