Because so many people nearing the typical retirement age are unsure about their financial stability, retirement planning lawyers will often point out the fact that you can benefit by working longer. If you are hardwired to the idea of retiring at a particular age, you may be forcing yourself to accept a reduced quality of living that could be avoided if you simply push that date back.
People sometimes wonder if it is possible to continue working while you are receiving a Social Security benefit without suffering any consequences. The answer to this question is that it depends on when you choose to start receiving your benefit.
You don’t have to wait until you reach full retirement age at 66 or 67 to start to collect Social Security. You may submit your application when you are as young as 62. However, there is a disincentive because your benefit would be higher if you waited until you reached the age of full retirement.
If you do retire early, you may be subject to a reduction in your benefit if you continue to earn income. Your benefit is trimmed down by one dollar for every two dollars that you make in excess of $14,640. This threshold is accurate for 2012, but it is subject to change in the future.
This arrangement is not permanent however. Once you reach the age of full benefit eligibility, this limit no longer applies and you can earn any sum of money without suffering any reduction in your benefit.