How much money can you make at 62 and still draw Social Security in 2022?

In 2022, if you were collecting Social Security at age 62 (under Full Retirement Age), you could earn up to $19,560 without any benefit reduction; for earnings above that, $1 was withheld for every $2 earned, but this penalty stopped once you reached your Full Retirement Age (FRA), after which you could earn unlimited income.

How much can a 62 year old make and still draw Social Security?

How We Deduct Earnings From Benefits. In 2025, if you're under full retirement age, the annual earnings limit is $23,400.

Can I collect Social Security at 62 and still work part time?

Yes, you can draw Social Security at 62 and work part-time, but your benefits will be reduced if your earnings exceed the annual limit for those under full retirement age (FRA). For 2025, if you are under FRA, the limit is $23,400, with $1 deducted for every $2 earned over that. Once you reach your full retirement age (67 for those born in 1960 or later), your earnings no longer affect your benefits, and past reductions are recalculated to increase your monthly payment. 

How much can I earn and not have to pay taxes on my Social Security?

You must pay taxes on up to 85% of your Social Security benefits if you file a: Federal tax return as an "individual" and your "combined income" exceeds $25,000. Joint return, and you and your spouse have "combined income" of more than $32,000.

How much money can I make without affecting my Social Security in 2025?

In 2025, if you're under your Full Retirement Age (FRA), you can earn up to $23,400 without your Social Security benefits being reduced; earning more results in a $1 benefit reduction for every $2 over the limit. If you reach your FRA in 2025, a higher limit of $62,160 applies until the month you hit FRA, with a $1 reduction for every $3 over that amount; after reaching FRA, there's no earnings limit. 

Social Security and Work: How Much Can You Make in 2025?

What is one of the biggest mistakes people make regarding Social Security?

Claiming Benefits Too Early

One of the biggest mistakes people make is claiming Social Security benefits as soon as they're eligible, which is at age 62. While getting money sooner can be tempting, claiming early has a significant downside: your monthly benefit will be reduced.

What is the penalty for earnings while on Social Security?

The Social Security earnings penalty, called the Retirement Earnings Test, reduces benefits if you earn over a certain limit before your Full Retirement Age (FRA), docking $1 for every $2 over the limit; in the year you hit FRA, it's $1 for every $3 over a higher limit (before the month you turn FRA). Once you reach your FRA, there's no limit, and you get all benefits regardless of earnings, with any withheld amounts repaid later. 

How to calculate Social Security taxable income in 2022?

The amount you pay in federal income tax on your Social Security benefits is based on your “combined income,” as the Social Security Administration (SSA) terms it. That's your adjusted gross income, plus any nontaxable interest you earned (along with certain other items), plus half your Social Security income.

How do I avoid a Social Security clawback?

If you do receive an overpayment notification, you have several options.

1. You can repay the full amount by check or online.
2. Set up a payment plan if you can't pay it all at once.
3. Appeal the decision if you believe the overpayment is incorrect or request a waiver if you cannot afford to repay it.*

How much do you have to make to get $3,000 a month in Social Security?

To get around $3,000/month in Social Security, you generally need a high earning history, around $100,000-$108,000+ annually over your top 35 years, but waiting to claim until age 70 maximizes this amount, potentially reaching it with lower yearly earnings, say under $70k if you wait long enough, as benefits are based on your highest indexed earnings over 35 years. The exact amount depends heavily on your specific earnings history and the age you start collecting benefits. 

What is the disadvantage of drawing Social Security at 62?

The primary disadvantage of claiming Social Security at age 62 is a permanently reduced monthly benefit, potentially by up to 30%, because you're taking it at the earliest possible time, not your Full Retirement Age (FRA), which is usually 67 for those born after 1960. This smaller base amount also leads to smaller future Cost-of-Living Adjustments (COLAs), meaning your benefit grows less over time, and it can impact spousal/survivor benefits, limiting your lifetime income potential significantly. 

What does Suze Orman say about taking Social Security at 62?

Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."

How many hours am I allowed to work if I retire at 62?

You can work as many hours as you want at age 62, but your Social Security benefits might be reduced until you reach your Full Retirement Age (FRA), typically 67; after FRA, there are no earnings limits, and you can work full-time without affecting benefits, though high earnings can make benefits taxable. The key factor is your income relative to the annual limit (e.g., ~$23,400 in 2025), not hours, as earnings over the limit reduce benefits dollar-for-dollar before FRA, but this is temporary and recalculated later. 

How much money will I lose if I retire at 62 instead of 65?

If a worker begins receiving benefits before his/her normal (or full) retirement age, the worker will receive a reduced benefit. A worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30 percent.

What is the 62 70 split strategy?

Social Security Strategies for Spouses

With the first strategy, sometimes called the “62/70 split,” the lower-earning spouse takes Social Security as early as age 62 and the higher-earning spouse postpones filing until age 70 to maximize his or her benefit.

What factors affect my Social Security estimate?

Let's break down each factor.

• Work history. When calculating your monthly Social Security benefit, the SSA will take your 35 highest-earning, inflation-adjusted years into consideration. ...
• Earnings history. ...
• Birth year. ...
• Claiming age.

Is Social Security going to be taxed in 2025?

Social Security benefits are still taxed under current tax law and considered a part of a recipient's taxable income. However, the 2025 Tax Act (One Big Beautiful Bill Act) introduced a temporary deduction that allows eligible beneficiaries to lower their overall taxable income and reduce their tax.

What is the yearly earnings limit for Social Security?

For 2026, the Social Security earnings limit for those under full retirement age (FRA) is $24,480, with $1 deducted for every $2 earned over that, while those reaching FRA in 2026 have a limit of $65,160 before deductions ($1 for every $3 over the limit). Once you reach your FRA, there is no earnings limit at all for the rest of the year and beyond, and your benefits are not reduced. 

What happens if I earn too much money while collecting Social Security?

If you earn too much, your benefits will be temporarily reduced. The 2025 Social Security earnings limit is $23,400. Your benefit will be reduced by $1 for every $2 you earn above this limit. Once you reach FRA, any benefits withheld will be returned to you in the form of higher monthly payments.

What is the smartest age to collect Social Security?

The "smartest" age to collect Social Security varies, but age 70 is often statistically best for maximizing lifetime benefits, as monthly checks grow significantly until then, especially for higher earners and those expecting long lives; however, claiming at Full Retirement Age (FRA) (67 for most) secures 100% of benefits, while taking it as early as 62 provides income sooner but permanently reduces payments, making it ideal for those with immediate financial needs or shorter life expectancies. 

How many Americans have $500,000 in retirement savings?

Only a small percentage of Americans have $500,000 or more in retirement savings, with recent data (late 2025/early 2026) suggesting around 7% to 9% of households have reached this milestone, though this varies by source and can be skewed by high-income earners or home equity. For instance, one study showed only 4% of all households had $500k-$999k, and 3.1% had $1M+. 

What are the three ways you can lose your Social Security?

You can lose Social Security benefits by working while collecting early, leading to earnings limits; incarceration, which suspends payments; or through garnishment for federal debts like taxes, student loans, or child support, along with other factors like remarriage or changes in disability status. 

What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a simple guideline stating you need about $240,000 saved for every $1,000 of monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate ($240k x 0.05 / 12 = $1k/month). It's a motivational tool to estimate savings goals (e.g., $3,000/month needs $720k), but it's one-dimensional, doesn't account for inflation, taxes, or other income like Social Security, and assumes steady 5% returns, making a personalized plan essential. 

What is the biggest retirement regret among seniors?

Not Saving Enough

If there's one regret that rises above all others, it's this: not saving enough. In fact, a study from the Transamerica Center for Retirement Studies shows that 78% of retirees wish they had saved more.