I wouldn't do it at age 62 or before full retirement age. Just know that there is a huge penalty if you are still working or making a reasonable income. the Feds will take 50¢ on every dollar you make over $19K and that has nothing to do with, and is BEFORE income taxes.The minute that I am eligible for SS, I am taking it. Been paying into it for 33 years already, time to start getting some of it back (in 12 years )
At and beyond full retirement age (usually between 66 and 67 years old depending on you age) there is NO penalty for earnings. Just know that 1/2 of your So. Sec. income is calculated into your federal taxes. and depending on how much you earn you may have a hard tax hit. Yes, you have to file taxes through retirement ! especially if you are peeling off a traditional 401(k) a nest egg - that money is taxed since it wasn't when it went in.
Luckily the standard deduction** is high for low to upper middle income folks - if that be you.
- Ken
reference:
Benefits Planner: Retirement | Receiving Benefits While Working | SSA
You can receive Social Security retirement or survivors benefits and work at the same time. However, if you are younger than full retirement age and earn more than certain amounts, your benefits will be reduced.
www.ssa.gov
** For married couples filing jointly, the new standard deduction for 2023 will be $27,700. This is a jump of $1,800 from the 2022 standard deduction. The 2023 standard deduction for single taxpayers and married filing separately will be $13,850. This is a jump of $900 from the 2022 standard deduction - Forbes, October 2022