Retire early at 62 and still work

[MikeL999049]

I do realize if I retire early at 62, I will take a 30% monthly hit of what I would receive at full retirement age. But if I retire at 62 and continue to work until I'm 67 making only $14000 per year. Will I receive 100% benefit at full retirement age? Or will I still have that 30% monthly hit forever because I retied at 62?

[Brightpool]

As I understand it, if you make $140,000 a year (more than $16,920), your benefit will be reduced by what you earn over the minimum, even down to $0. While you work, you will earn more SSA points and your future benefit will be increased accordingly.
See details at ssa dot gov about working while retired.

[GailL1]

@Brightpool 

Although you are correct in your numbers and overall generalization about how this part of SS works, the OP said he was going to be making $ 14,000 per year and NOT $ 140,000 per year.

Slight difference      

[MikeL999049]

Thanks for the reply

I was hoping it would increase to the max as I worked those years up untill full retirement age. but I guess since they are giving it early it would have to be reduced some.

Yes, That would be $ 14,000 per year

[GailL1]

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@MikeL999049 wrote:

I do realize if I retire early at 62, I will take a 30% monthly hit of what I would receive at full retirement age. But if I retire at 62 and continue to work until I'm 67 making only $14000 per year. Will I receive 100% benefit at full retirement age? Or will I still have that 30% monthly hit forever because I retied at 62?

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Your benefit will ALWAYS be reduced because you officially retired in the SS system at age 62 and began to draw your (reduced) benefit.

However, once you stop working at 67, your benefit will be recomputed by SSA to reflect those additional 5-years of working and paying into the SS system via your and your employer's payroll tax collections.  These additional benefit amounts will be figured at the reduced rate because you officially retired early.