Claim Social Security at 62 and Keep Working, and They Claw Back $1 of Every $2 Over the Limit. These 3 ETFs Replace the Job Instead

Claiming Social Security at age 62 and continuing to work may subject you to the earnings test, which can deduct $1 in benefits for every $2 earned above the annual limit. Investment income, such as dividends, interest, and capital gains, does not count towards this limit. Three ETFs—JPMorgan Equity Premium Income ETF (JEPI), First Trust Rising Dividend Achievers ETF (RDVY), and Vanguard Utilities Index Fund ETF Shares (VPU)—can generate income without contributing to the earnings test.

JEPI is a high-yield ETF that uses covered calls and equity-linked notes to distribute income. In 2025, it paid $4.80 per share monthly, with an expense ratio of 0.35%. It has delivered a 5.94% return year-to-date and an 11.23% return over the past year. RDVY, on the other hand, focuses on companies with a history of increasing dividends and strong financials. It has a 20.83% return year-to-date and 30.05% over the past year, along with exposure to semiconductor names like Lam Research and Applied Materials.

VPU tracks the MSCI US IMI Utilities Index, providing exposure to utilities that generate predictable cash flows. It offers a 2.7% yield, with an expense ratio of 0.09%. The fund has a 3.93% return year-to-date and a 133.7% return over the past decade, making it a more defensive option compared to JEPI and RDVY.

While these ETFs do not eliminate the earnings test or Social Security early claim penalties, they provide additional income sources that are not subject to the test. JEPI offers higher monthly income, RDVY provides dividend growth and capital appreciation, and VPU offers a defensive income stream. Together, these three ETFs can help supplement your Social Security income while working past full retirement age. New Active Invest users can receive up to $3,000 in stock by opening an account and depositing $50 or more.