9 Commonly Believed Myths about Social Security

6) You’ll be penalized if you try to collect Social Security while working

Of all the myths on our list, this one has the most truth to it, although it is still somewhat of a myth.

The thing to know in all of this is what is the retirement age, and what is the age in which you can begin to collect social security. The full retirement age of 65 is the age when you are able to collect full, or unreduced benefits. As our population grows older due to medical advancements and the stubbornness of our old-folks, you can expect the retirement age to increase, so pay attention when you are ready to retire.

If you collect benefits prior to your retirement age, such as at 62, rather than 65, your benefits will be reduced for the years you collected social security before retirement age. You can expect a temporary reduction of $1 for every $2 you earn over $15, 480. However, once you reach retirement age, your benefits will increase to account for benefits withheld earlier.

It’s not a penalty, but rather a delayed payment depending on when you decide to retire, and collect benefits.