'It seems like half of the workforce at our local Walmart is over 65'
"Where is all that money going if I am still working and contributing?" (Photo subject is a model.)
Dear Quentin,
I filed for Social Security at 62 because I was having a hard time paying my bills without it. I am now 76 and have been working full-time or part-time ever since then. I see so many other seniors working too. In fact, it seems like half of the workforce at our local Walmart is over 65. I get Social Security taxes taken out of every paycheck.
Where is all that money going if I am still working and contributing?
Still Working
Related: 'The numbers don't lie': If I had invested my Social Security in the S&P 500 I'd have $4 million. Is the system broken?
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.
This pay-as-you-go rule applies to all retirees and people who rely on Social Security Disability Insurance.
Dear Working,
You pay into Social Security for the collective good.
Here's how it works: You pay 6.2% of your earned income toward Social Security and 1.45% toward Medicare, totaling 7.65% of your salary. Your employer matches these contributions, bringing the combined total to 15.3%. This pay-as-you-go rule applies to everyone, including retirees and people who rely on Social Security Disability Insurance.
Depending on your other income in retirement, your Social Security benefits may also be taxable. The main pressures on Social Security stem from demographic shifts: People are living longer and birth rates have fallen, reducing the ratio of workers to retirees, so there's a one-size-fits-all rule that applies regardless of whether someone is still working.
Current projections indicate that the Social Security trust funds could become depleted in the early 2030s if Congress takes no action (it has, however, intervened in the past). Payroll taxes would continue to come in, and the system would still be able to pay a substantial majority of scheduled benefits.
Your Social Security benefit is calculated based on the average of your 35 highest-earning working years. Even though you decided to claim at 62, which sounds like a decision born of necessity, your benefits are still reviewed every year, given that you're still working. Your current job is calculated as part of those 35 years.
If you earn more money now than you did during any of those 35 years, your benefit should see a bump. It's a trade-off: Keep working to earn extra money and continue paying into the Social Security system, or stop working and survive on just your Social Security benefits and any other income. For those who wait to claim Social Security, delayed retirement credits end at age 70.
Related: I'm a CPA and tell my clients to claim Social Security early. Am I giving them bad advice?
Potential funding shortage
Raising or eliminating the cap on wages that are subject to Social Security taxes would be one way of collecting additional funds for Social Security. Earnings above a certain level - in 2026, that amount is $184,500 - currently aren't taxed for Social Security, so raising that cap would bring in more revenue from workers with higher incomes.
Other proposed adjustments to Social Security include raising the full retirement age from 67, which would be sure to create a great deal of pushback - nay, backlash - from members of the public. A modest, gradual increase in the payroll-tax rate is another option for shoring up the long-term solvency of the program.
Nearly one in five Americans over 65 - roughly 12 million people - are still employed, studies suggest. After 67 - which is the current full retirement age for people born in 1960 or later - nearly one-third of people are still working. At Walmart $(WMT)$, the largest private employer in the U.S., over 200,000 employees, or 13% of staff, are over 60, according to this report from Business Insider.
Americans are increasingly working into their 60s due to a combination of the high cost of living, longer life spans, a lack of retirement savings and, in some cases, because they want to. Nearly one in five people 65 and older are still in the workforce. This represents roughly 20% of the retirement-age population.
I assume you're on your feet a lot during the day. As AARP points out, the ability to keep working beyond age 70 likely depends on the nature of the job. For people who work in physically demanding occupations - such as warehouse work, construction and home healthcare - it becomes increasingly difficult to continue working as they grow older.
I take my hat off to you. Retail is no picnic, either.
Don't miss: 'I'll happily wait': Does delaying Social Security make sense for high earners like me?
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More columns from Quentin Fottrell:
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-Quentin Fottrell
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July 03, 2026 08:15 ET (12:15 GMT)
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