Many people wonder if they can start Social Security benefits at age 66 while still working full-time. If you’re planning to retire later but want to claim your Social Security at Full Retirement Age (FRA), you may be curious about how your benefits are calculated, whether your future income will still count, and if working longer can actually increase your payments.
This article explains how Social Security works in this situation, what happens to your benefits, and how a financial adviser can help.
Claiming at 66 vs. Waiting Until 70
- At FRA (66): You get your standard benefit amount. From then on, increases mostly come from Cost-of-Living Adjustments (COLA).
- Waiting until 70: Your benefit grows about 8% each year you delay. This can make a big difference if you live longer or if your spouse may depend on survivor benefits.
How Social Security Benefits Are Calculated
Your Social Security benefit is based on your highest 35 years of earnings. Many people mistakenly believe it is only the last 35 years, but that’s not true. If you work from age 66 to 70 and earn more than you did in some earlier years, your record will be updated, and your benefits can increase.
| Key Factor | What It Means |
|---|---|
| Calculation | Based on your highest 35 years of earnings |
| Updates | SSA reviews your record every year, even after you claim |
| Earnings after 66 | Can replace lower past salaries and boost benefits |
| FRA filing | Locks in your base benefit; growth mainly through COLA |
| Delaying past FRA | Adds about 8% per year until age 70 |
Taxes on Social Security Benefits
Even though you won’t face a benefit reduction if you work after FRA, your benefits may still be taxable. If your overall income is high, part of your Social Security could be taxed. Planning with a tax-smart strategy, like increasing pre-tax 401(k) contributions, may help lower your taxable income.
Why Reviewing Your Earnings Record Matters
Each year, you should check your Social Security statement to make sure your earnings history is correct. Missing wages or errors can reduce your benefits. Downloading and saving your statement is an easy step to avoid surprises.
Should You Work With a Financial Adviser?
A fee-only Certified Financial Planner (CFP) can guide you through retirement planning. CFPs must follow strict education, testing, and fiduciary rules, meaning they always put your best interests first. They can:
- Help you decide when to claim Social Security.
- Suggest tax strategies to reduce income.
- Ensure your retirement income plan supports your long-term goals.
Websites like NAPFA and the CFP Board can help you find qualified advisers.
Starting Social Security at age 66 while continuing to work is a flexible option. Your benefits will still be reviewed each year and could increase if you replace lower-earning years with higher salaries.
If you wait until 70, your monthly benefit can grow by 8% per year, providing long-term financial security for both you and your spouse. To make the most of your benefits and reduce taxes, working with a fee-only financial adviser is highly recommended. Careful planning ensures you enjoy a stable and comfortable retirement.
FAQs
Yes. If your new earnings are higher than past lower-income years, they will replace them and can increase your benefit.
Yes, it can be. If your total income is high, part of your Social Security benefits may be taxed.
Generally no. Once you claim, you cannot easily change it. That’s why planning before filing is very important.