Can I Still Get Social Security at 70 If I Stop Working Now?

Many individuals wonder if they can still receive Social Security benefits at age 70 if they stop working before then. This article aims to clarify the eligibility and factors that affect receiving benefits at this age, based on the U.S. Social Security system. Understanding these factors can help you plan for your retirement effectively.

Eligibility for Social Security Benefits

According to the U.S. Social Security Administration (SSA), to be eligible for Social Security benefits, you must have at least 10 years of work covered by Social Security. If you are 62 or older, you can start receiving partial benefits. However, to receive your full benefit, you should work until you reach your Full Retirement Age (FRA), which is 67 if you were born in 1960 or later.

The best way to determine if you are eligible for Social Security benefits is to visit the My Social Security website and review your personal benefits statement.

Impact of Stopping Work Early

If you stop working before reaching FRA, your Social Security benefit will be lower, as it is based on your highest 35 years of earnings. The SSA uses the average of your highest 35 earning years to determine your benefit amount. If your income in some of those 35 years is zero because you have stopped working, this will impact your benefit amount.

Partial Benefits and Maximum Benefits

Even if you have less than 35 years of work, you will still be eligible for benefits as long as you have 10 years of covered work. However, these benefits are likely to be lower than the maximum you could receive if you continued working until FRA. If your indexed earnings exceed about $75,000, the SSA will take the highest 35 years of earnings into account. If you have fewer than 35 years, the SSA will use zeroes for the missing years, which can significantly reduce your monthly benefit.

Strategies for Retiring Without Filing Early

If you are considering retiring and stopping work now, here are some strategies to consider:

Investments: Create a diversified investment portfolio that can generate income to cover your living expenses. This can help you maintain your lifestyle without relying solely on Social Security benefits. Freelance Work: Consider taking on freelance or part-time work that aligns with your skills and interests. This can help you stay active and connected, while still providing some income. Side Hustles: Engage in side hustles or entrepreneurial activities that can provide a steady source of income. Retirement Accounts: Utilize retirement accounts such as IRAs and 401(k)s to supplement your Social Security benefits. Pension Plans: If you have access to a pension plan, it can provide a steady stream of income in retirement.

Timing and Benefits

One of the most critical factors to consider is the timing of your retirement and the benefits you can receive. If you stop working and file for benefits at 62, you will receive a smaller monthly check compared to waiting until your FRA or beyond. The full benefit amount is usually available at FRA, and the benefit can increase up to 8% per year for each year you wait until age 70.

For men, it is common for many not to work after the age of 62, as they typically have reached FRA by then. However, for women, it is often more likely that they will continue to work past 62, as their retirement might be planned for a later age. Therefore, continuing to work can add to your benefit amount, especially given that women often have a longer average life span compared to men.

Conclusion

While it is possible to receive Social Security benefits at 70 even if you stop working earlier, the amount you will receive may be lower than if you had continued working until FRA. It is crucial to plan accordingly to ensure you can maintain your lifestyle in retirement. Consulting with a financial advisor can provide personalized advice tailored to your specific situation.

Keywords: Social Security, Retirement Benefits, Age 70