Quick Read
Retirement confidence jumped 13 points to 41% in 2026, yet 60% of workers still expect to retire later than planned.
Working past 62 without claiming Social Security avoids the earnings test, which withholds $1 for every $2 earned above $24,480.
Your retirement date and Social Security claiming date are separate decisions. Delaying claims up to age 70 grows monthly benefits and spouse survivor payouts.
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Retirement savers feel better about reaching the finish line, and they also expect to get there later. The 2026 MFS Global Retirement Survey, released by MFS Investment Management on October 21, found that 41% of U.S. workplace retirement plan participants are very or extremely confident they can retire at their preferred age.
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That’s a 13-percentage-point jump from 2025, but there’s a catch. Six in 10 still expect to work longer than planned, while three-quarters say competing financial obligations are keeping them from saving enough for retirement. Gen X is feeling the pressure, with just 32% confident they can retire when they want.
Picture Dave, a 63-year-old project manager who plans to stay on the job a couple more years. His paycheck covers the bills, but friends keep telling him to start Social Security now. One woman put almost the same question to a personal finance show: she was about to turn 62 and wanted to know whether she could start benefits and invest them while she kept working part time until full retirement age (FRA).
For Social Security, working longer involves two separate decisions. Extra years on the job can raise Dave’s benefit, but claiming while he works before full retirement age (FRA) can put his checks on hold. The day he stops working and the day he claims can be different dates.
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Each Extra Year on the Job Can Raise Your Check for Life
Your benefit is calculated from your 35 highest-earning years, adjusted for wage growth. Social Security reviews the earnings of beneficiaries who keep working. If a new year ranks among their highest 35 and raises their benefit, the agency recalculates it automatically, with any increase retroactive to January of the following year. The adjustment is generally paid in December.
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That matters if Dave earns more now than he ever has. A strong earnings year at 63 could replace a weaker year from his twenties, such as an entry-level job or a part-time gig during school, depending on how those earlier wages are adjusted. The increase would carry into future benefits and their annual cost-of-living adjustments (COLAs). Social Security has already announced a 3.6% raise for 2027.
Claiming Before FRA Comes With an Earnings Cap
If you claim before FRA and keep working, Social Security withholds $1 for every $2 you earn above $24,480 in 2026. The agency’s 2027 fact sheet raises that limit to $25,560.
A full-time salary like Dave’s is well above that line. The withholding could eat up months of checks, and possibly the whole year’s worth. Withheld months do get credited back, because Social Security recalculates the benefit at full retirement age to account for them.
Even so, the cash flow could be disappointing. Dave would start with a reduced early-claiming benefit, only to have much of it withheld while he’s still earning a salary. Social Security would adjust his benefit upward at FRA to account for those withheld months, but claiming early could still leave him with a smaller monthly check than if he’d waited to file.
Stop Working and Start Benefits on Separate Dates
Dave can keep working without claiming. The earnings test only applies to people who are collecting benefits, so he avoids it completely. In the meantime, another high-earning year can boost his earnings history.
When he does retire, he picks a claiming date based on what makes sense at that point. He could claim right away. He could also live on savings for a while and let his benefit keep growing, up to age 70. If he’s married, waiting could also increase the survivor benefit available to his spouse.
Quality of life belongs in the math too. One retiree who claimed early told a radio host that once he reached 62, a day of his life felt worth more to him than a bigger check later on. That reasoning works best when, like him, you have a pension and solid savings behind it.
Run Your Estimate at the Age You Will Really Stop
If you’re among the 60% in the MFS survey expecting to work longer, update your Social Security estimate to reflect those additional earning years. Then compare what you’d receive at different claiming ages. Working longer could boost your benefit, but you don’t have to start collecting the day you leave your job.
Treat the claiming date as a separate decision, made with your savings, health and spouse in mind. Claiming early while still drawing a full salary is the choice that’s hardest to undo. Details such as a mid-year retirement date or a spouse’s age can change the best answer, so check your own record before you file.
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