I'm Still Working for the Railroad; Can I Start my Railroad Retirement at 67?

Welcome, everyone, to another edition of the Highball Advisors Railroad Retirement Mailbag. I’m John McNamara with Highball Advisors, and today’s question comes from Mike G. He asks:

“I currently work for the railroad and I’m 65. With 20 years of service at age 67, can I continue working for the railroad and draw my Tier I retirement benefits, or will I only be eligible for the Social Security portion based on my previous earnings?”

Great question, Mike.

Here’s how it works: You can’t begin receiving your Railroad Retirement benefits—specifically Tier I or Tier II—while you're still actively employed by the railroad. That’s because your Tier II benefits are still being accrued as you continue working.

However, you can start collecting Social Security at your full retirement age without facing any reductions for age or continued work. That option is available because you're past the earnings limit threshold that applies before full retirement age.

Then, once you officially retire from the railroad, you can switch over and begin collecting your full Railroad Retirement benefits.

For a deeper dive on this topic, check out my video titled "Choosing Between Social Security and Railroad Retirement: Which One Is Right for You?" It breaks down the pros and cons and gives you more details on how to make the best decision based on your situation.

I hope you found this helpful! If you have a question you'd like me to cover in a future video, feel free to send it in.

Until next time—stay safe, stay on track, and take care. So long, everybody!

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.