Can I Still Work If I Retire at 62? Eligibility & FRA Rules
Retiring at 62 allows you to start claiming Social Security benefits, but it doesn’t necessarily mean you stop working.
Many people continue earning income through part-time or full-time work while beginning to draw benefits.
Working after claiming is generally allowed, though your earnings can affect how much you receive before full retirement age under Social Security rules.
Eligibility and Benefit Reduction at 62
You can begin Social Security retirement benefits as early as age 62, but that is only an early-claiming option, not full-benefit age.
| Claiming Age | Benefit as % of Full Retirement Benefit | Reduction % |
|---|---|---|
| 62 | 70% | 30% |
| 63 | 75% | 25% |
| 64 | 80% | 20% |
| 65 | 86.7% | 13.3% |
| 66 | 93.3% | 6.7% |
| 67 (FRA) | 100% | 0% |
| 70 | 124% | +24% |
The SSA’s early-claim reduction charts show that claiming before full retirement age permanently lowers the benefit amount.
By contrast, if you wait until age 70, the SSA says your benefit rises to 124% of the full retirement amount for people born in 1960 or later.
So, if you delay claiming, it will produce a larger monthly payment for life.
Income Types and Earnings That Count
Only wages and net self-employment count toward the earnings limit.
This includes salary, bonuses, commissions, tips, and profits from a business. It does not include:
- Pensions, annuities, or deferred compensation
- Investment income
- Rental income
- Unemployment benefits, VA benefits, or other public assistance.
So, basically, if it’s income from working, it counts; if it’s passive or non-earnings, it does not.
Full Retirement Age (FRA) by Birth Year
Here is the Full Retirement Age (FRA) by birth year for U.S. Social Security benefits.
It is the age at which you receive your 100% unreduced benefit, and the earnings test no longer reduces benefits:
| Birth Year | Full Retirement Age (FRA) |
|---|---|
| 1937 or earlier | 65 |
| 1938 | 65 + 2 months |
| 1939 | 65 + 4 months |
| 1940 | 65 + 6 months |
| 1941 | 65 + 8 months |
| 1942 | 65 + 10 months |
| 1943 – 1954 | 66 |
| 1955 | 66 + 2 months |
| 1956 | 66 + 4 months |
| 1957 | 66 + 6 months |
| 1958 | 66 + 8 months |
| 1959 | 66 + 10 months |
| 1960 or later | 67 |
Do You Get Medicare and Health Coverage at 62?
Retiring at 62 does not change Medicare eligibility at 65.
- Medicare starts at age 65
- You don’t have to retire to get Medicare
- Full Retirement Age (FRA) is later than Medicare age
- You can take Social Security early at 62
You pay $0 for Part A because you paid Medicare taxes long enough, generally at least 10 years.
Part B has a standard premium of $202.90 per month for most people, though higher-income beneficiaries pay more under IRMAA.
If you or your spouse is still working and has job-based coverage, you may be able to delay Part B without a late penalty.
Once you stop working or lose that employer coverage, you generally get an 8-month Special Enrollment Period to sign up for Part B.
Do You Pay More Taxes On Your Work Income After 62?
If you keep working, your wages are still subject to payroll taxes.
1. Reduce SS Payments
If you take Social Security early before FRA and still work, and if your wages are above a yearly limit, the government will temporarily stop or reduce your Social Security payments.
But you will get credit for those months later when you reach full retirement age.
2. Combined Income
Say you earn wages and also get Social Security, your total income may become higher, and then part of your Social Security benefits may be taxed as income.
Does COLA Affect Your Payment?
Social Security’s annual COLA helps benefits keep pace with inflation.
If you claimed early, the COLA still applies, but it is applied to a smaller base benefit.
That means it helps, but it does not erase the permanent effect of claiming early.
