Plenty of people keep working well past 65, and not just for the paycheck. The Centers for Disease Control and Prevention has noted that work offers real benefits for older adults: social connection, purpose, and a better quality of life. Labor force participation rates for older workers are expected to keep rising through 2030.
But if you’re still working at 70 or beyond, there are a few important things to know about how your Social Security benefits are affected.
If You’re 70 or Older, File Now
The Social Security Administration is clear on this: if you’re 70 or older and haven’t claimed yet, apply now. Waiting any longer won’t add a single dollar to your benefit.
Andrew Lokenauth, founder of Fluent in Finance, put it plainly. “The delayed retirement credits that boost your benefit by about 8% per year stop at 70,” he said. “So if you’re past 70 and haven’t claimed yet, file now, because waiting costs you money every single month.”
Many people assume that working longer always means a bigger Social Security check. That’s true up to age 70. After that, the math stops working in your favor.
Your Earnings Could Still Boost Your Benefit
Here’s some good news: you can collect Social Security and keep working at the same time. And your continued earnings may actually increase your monthly payment.
Marguerita Cheng, CFP and CEO of Blue Ocean Global Wealth, explained how. “Your monthly benefit may increase if your new earnings are higher than one of your previous top 35 highest-earning years,” she said. “In other words, your Social Security benefit can increase.”
So if you’re in a higher-paying job now than you were earlier in your career, those new earnings could push your benefit up, even after you’ve started collecting.
Watch Out for the Tax Side
Working past 70 can affect how much of your Social Security gets taxed. That’s worth paying attention to before you do the math on whether staying on the job makes sense financially.
Brandon Gregg, CFP, and advisor with BBK Wealth Management, flagged this directly. “Extra income could still affect how much your Social Security is taxed,” he said. “Up to 85% of your Social Security can be taxed depending on how far your income goes up.”
That doesn’t mean working isn’t worth it, for many people, it absolutely is, both financially and personally. But it’s smart to factor taxes into the picture before making any decisions.