40% of older Americans work after claiming Social Security benefits

Less understood, according to a new analysis by the Center for Retirement Research at Boston College, is just how many people are working while collecting Social Security, and who they are. Are they working out of necessity, or are there other motivations, such as maintaining social engagement? And what does the decision to work, effectively delaying some benefit payments, mean to their long-term retirement security?

It turns out, CRR researchers Siyan Liu and Laura Quinby detail, that working after claiming serves different purposes for different groups. Two-thirds of these worker-beneficiaries rely on Social Security to supplement reduced earnings and may have limited capacity to delay claiming. The remaining third maintain substantial earnings levels for several years, on average, suggesting greater financial flexibility to delay.

Why It Matters

The decision to claim Social Security benefits, as the authors discuss, is conventionally viewed as a proxy for the decision to retire and stop working outright. The reality in 2025 is that claiming does not necessarily signal full retirement.

The authors point to the Census Bureau’s Current Population Survey to show that many older workers remain in the labor force even after becoming eligible for Social Security.

“Although the labor force participation rate declines sharply after people reach age 62, it remains above a quarter through age 70,” the authors note. “These relatively high labor force participation rates are consistent with recent studies showing that earnings constitute more than a fifth of income for households over age 65.”

The persistence of employment after typical claiming ages suggests that some workers claim Social Security and work at the same time. Understanding this behavior matters for evaluating households’ retirement preparedness, the authors insist, as well as the design of the program.

“If individuals who work after claiming are disadvantaged and rely on Social Security benefits to supplement reduced earnings, benefit cuts such as raising the FRA may hurt them disproportionately,” the paper warns. “Conversely, if they have the financial capacity to delay claiming, policymakers could encourage them to do so.”

Why Work?

To assess the policy implications of working after claiming, the authors sought to establish the prevalence of this behavior, using the long-running Health and Retirement Study. They tracked individuals from age 56 — when the vast majority are still in the labor force — to age 75, when most have fully retired. 

“The HRS interviews respondents once every two years, with the first post-claiming interview in our sample typically occurring about one year after respondents have claimed their benefits,” the authors explain. “Hence, we observe any employment reported in that initial post-claiming interview as well as at two-year intervals thereafter.”

This longitudinal view shows that working after claiming Social Security retirement benefits is fairly common, with around 40% of older individuals reporting ever working after their claiming date — either because they start claiming before they retire, or because they go back to work after an initial retirement.

Among worker-beneficiaries, the authors theorize, the timing of claiming reflects two primary characteristics and circumstances.

“Since the earnings test could discourage significant work activity for early claimants, those who claim before the FRA likely do so because they cannot, or choose not to, continue working at full capacity,” the paper suggests.

In this case, Social Security benefits may provide the income needed to phase into retirement — a common reason cited for early claiming.

Conversely, the motivations of those who claim between the FRA and age 69 and then keep working are more complex. These workers are no longer subject to the earnings test yet decide not to delay claiming to 70.

“Their decisions could reflect social norms around the FRA, a desire to move into transitional bridge employment at that time, or the claiming of Social Security spousal benefits (which unlike worker benefits do not increase after the FRA),” the authors postulate.

Conclusions and Considerations

Examining employment patterns supports both of these stories, according to the authors.

“Worker-beneficiaries who claim before the FRA are mostly working part time — half of all worker-beneficiaries claim before the FRA and work part time, while only 18% claim early and work full time,” the report concludes.

In contrast, a majority of their counterparts who claim between the FRA and age 69 are working full time.

“For the early claimants, this pattern is consistent with using Social Security benefits to supplement reduced earnings while gradually transitioning out of the labor force,” the authors note.

As noted, these findings have significant import for the ongoing debate about how to “save Social Security.”

“The first group … claim as early as they can and use Social Security to supplement significantly reduced earnings,” the report states. “Policies like raising the FRA may disproportionately harm these workers, who are less likely to hold the types of white-collar jobs that facilitate working longer.”

Conversely, the remaining 13% typically work full time and see increased total income as a result. While their motivations for claiming remain unclear, they seem to have significant work capacity and could perhaps be nudged to delay claiming to potentially increase their lifetime benefits.

“Future research should explore what drives their claiming decisions and whether targeted interventions could help them delay,” the authors propose. “Additionally, since work after claiming typically lasts about five years, future research should examine how this behavior impacts households’ overall retirement security.”