Should I Collecct Social Security at Full Retirement Age While Working for the Railroad?

Welcome to another edition of the Highball Advisors Railroad Retirement Mailbag! I’m John McNamara with Highball Advisors, and today’s question comes from Ron D. He asks, "If you continue working past your full retirement age, and you're vested in Social Security (with 40 quarters), can you start collecting Social Security at full retirement age? And if so, will you get delayed retirement credits on your Tier 1 railroad retirement when you eventually retire?"

Here’s the answer: Yes, you can start collecting Social Security at your full retirement age if you’re entitled to it. However, you’ll only receive delayed retirement credits on the Tier 1 portion of your railroad retirement benefits—because you’ve already started Social Security. You won’t get delayed retirement credits on the Social Security portion, only on the railroad retirement portion.

It's important to note that there are no delayed retirement credits for the Tier 2 portion of your railroad retirement benefits, and spousal annuities don’t earn delayed retirement credits either.

For more details, check out my video on "Choosing Between Social Security and Railroad Retirement: Which One is Right for You?"—it covers a lot of important topics.

Railroaders, if you’ve found this helpful, feel free to send in your questions, and I’ll create a video response for you! Until next time, stay safe, stay on track, and take care. So long, everyone! Bye.

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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.