Working Past 70 Won't Hurt Your Social Security and 6 Ways It Actually Helps

Nearly all American retirees (94%) say they rely on Social Security as an income source. Despite that, about 70% of them express some uncertainty about how the program functions.

That uncertainty might encourage some people to make decisions that don't align with their plans for a stress-free retirement. For instance, if you're 70 or older, you might worry that holding a job will negatively impact your benefits.

The truth is that working after full retirement age (FRA) could actually improve your benefits.

The United States Social Security Administration (SSA) uses your highest 35 years of income to calculate your monthly payment. If you earn more money now than you did in the past, the administration will incorporate that higher salary into your payment.

Imagine you have some years when you earned very little or even no income. Each year you work now will replace a low-income or no-income year from your past. The SSA will revise its calculation to only include your top 35 years. That means your benefit payment will keep growing.

Since you've already started accessing your benefits, you'll start getting the increased payments next year.

The age you retire and start drawing Social Security benefits will determine what percentage of your full benefit you receive. If you wait until you turn 70, you'll get 124% of your full benefit.

Here are the percentages you'll get paid at each retirement age:

• 62—70%
• 63—75%
• 64—80%
• 65—86.7%
• 66—93.3%
• 67—100%
• 68—108%
• 69—116%
• 70—124%

At 70, you'll get the highest percentage. It won't increase anymore as you get older.

Before you reach FRA (currently 67 years for anyone born in or after 1960), SSA will temporarily withhold some of your earnings to fund future benefits. The amount the SSA takes depends on your age and income, though. For example, if you start taking benefits before you reach FRA, SSA will withhold $1 for every $2 you make over $23,400.

If you stay under the $23,400 earnings limit, the SSA won't withhold anything. Once you reach FRA, though, that earnings limit disappears, so SSA doesn't withhold anything.

The government won't stop you from contributing to retirement accounts after you turn 65. By investing more of your dollars into retirement plans like a 401(k), 403(b), Roth IRA, or SEP, you can generate more passive income.

Importantly, the IRS has increased its limits for some retirement plans. For instance, the maximum contribution for 401(k), 403(b), and governmental 457 plans increased from $23,000 in 2024 to $23,500 in 2025.

In most cases, the federal government forces retirees to take required minimum distributions (RMDs) each year. But what if you keep working after you reach FRA? It turns out that you could delay taking RMDs from your 401(k) accounts, giving your investments even more time to grow.

There's a small caveat to consider. If you own 5% or more of the business that sponsors your plan, you can't avoid the RMD.

Even if you want to keep working into your 70s, you should apply to receive your Social Security benefits. The amount you receive will not decrease once you turn 70, regardless of how much money you make each year.

To put it bluntly, there's no reason you shouldn't start taking your benefits. You've paid into it all of your working life, and now is the time to reap the reward. You'll just have your Social Security benefits in addition to your income, which should help mitigate any financial strain you might feel.

Working past 70 can have a lot of positive effects on your Social Security benefits. However, you should take time to consider how the income might influence the cost of Medicare, especially Medicare Part B and Medicare Part D.

If you have a modified adjusted gross income of more than $106,000 (filing individual or married filing separately) or $212,000 (married filing jointly), your Medicare costs might increase.

Social Security sends about $1.6 trillion in benefits to nearly 69 million Americans every year, making it one of the country's biggest, most successful programs.

Any program that big will have some confusing aspects, which should be taken into account when figuring out if you're ready for retirement.

If you feel like you need more personalized advice, reach out to an expert. Many organizations, including AARP and financial advisory services, can lead you in the right direction.