Many people today continue working into their mid-60s, late 60s, or even 70s. Some claim Social Security while still working. Others delay Social Security but enroll in Medicare. Some keep employer coverage and delay parts of Medicare.

The right answer depends on several factors: your age, your income, whether you have reached full retirement age, whether you have active employer coverage, whether your employer has 20 or more employees, and whether you are contributing to an HSA.

Can You Work and Collect Social Security?

Yes. You can work and collect Social Security retirement benefits. However, if you are younger than full retirement age, Social Security may temporarily withhold some benefits if your earnings are above the annual earnings limit.

What Happens After Full Retirement Age?

Once you reach full retirement age, the Social Security earnings test no longer applies. That means you can generally work and earn income without having Social Security retirement benefits reduced because of your earnings.

This is a major reason some people wait until full retirement age to claim Social Security, especially if they plan to keep working and earn significant income.

How Working Affects Medicare at 65

Medicare eligibility usually begins at 65. If you are still working at 65, you need to decide whether to enroll in Medicare right away or delay certain parts of Medicare because you have active employer coverage.

Medicare and Employer Coverage: What to Review

If you are working past 65, do not assume your employer coverage automatically means you can ignore Medicare. The size of your employer, the type of coverage, and whether the coverage is considered active employer group coverage can affect your decision.

Questions to ask your employer

• Do I have active employer group health coverage?
• Does the employer have 20 or more employees?
• Will Medicare be primary or secondary?
• Can I delay Medicare Part B without penalty?
• Will my spouse remain covered if I enroll in Medicare?
• Am I enrolled in an HSA-compatible high deductible health plan?
• Should I stop HSA contributions before enrolling in Medicare?

Should You Claim Social Security While Still Working?

Claiming Social Security while working can make sense if you need the income, have reduced hours, are near or past full retirement age, or want to preserve other assets.

But if you are under full retirement age and still earning a high income, the earnings test may reduce your current benefit payments. You also need to think about taxes, because Social Security benefits can become taxable depending on your total income.

Common Scenarios

Scenario 1: You are 64, working, and thinking about claiming Social Security

You may be able to claim Social Security, but you are still below Medicare age and may still need employer coverage or another health insurance option. If your earnings are above the Social Security limit, your benefits may be temporarily reduced.

Scenario 2: You are 65, working, and covered by a large employer plan

You may have a choice between enrolling in Medicare or keeping employer coverage as your primary insurance. This decision should be reviewed carefully, especially if you have dependents, a spouse on your plan, or HSA contributions.

Scenario 3: You are 67, working, and collecting Social Security

If you have reached full retirement age, the earnings test no longer reduces your Social Security retirement benefits. But your income may still affect taxes and Medicare premium adjustments.

Mistakes to Avoid

• Assuming you must take Medicare just because you turned 65
• Assuming you can delay Medicare without confirming your employer coverage
• Claiming Social Security early without checking the earnings limit
• Continuing HSA contributions after Medicare enrollment
• Forgetting that Social Security income may be taxable
• Missing your Medicare Special Enrollment Period after leaving employer coverage

FAQs About Working While Collecting Social Security

Can I collect Social Security and still work?

Yes. But if you are under full retirement age, your benefits may be reduced if your earnings are above the annual limit.

Does working affect Medicare?

Working itself does not prevent Medicare enrollment. However, active employer coverage may affect whether you enroll in Medicare Part B right away or delay it.

Do I have to take Medicare if I am still working?

Not always. Some people with active employer coverage can delay Medicare Part B. But this depends on the employer plan and should be confirmed before delaying.

Will Medicare be deducted from my Social Security if I am still working?

If you are receiving Social Security and enrolled in Medicare, your Part B premium is often deducted from your Social Security payment. If you are not receiving Social Security, you may be billed directly.

Should I talk to someone before retiring from work coverage?

Yes. Before leaving employer coverage, review Medicare Part B, Part D, Medicare Supplement, Medicare Advantage, prescription coverage, and any deadlines that apply.

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