Many people receiving Social Security retirement benefits choose to continue working or return to work. Some enjoy the social aspect of work, while others have a financial need. However, working past your “retirement” can affect your monthly benefit from the Social Security Administration.
Just how much can you earn while receiving Social Security? The answer depends on whether or not you have reached full retirement age. Working can potentially decrease your monthly benefit payment and cause your Social Security benefits to become taxable. Keep reading as we tell you how much you can earn while on Social Security without affecting your benefits.
How Working After Retirement Affects Your Social Security Benefits
Once you apply for Social Security retirement benefits, the Social Security Administration (SSA) considers you retired for their purposes. Working past retirement can affect your retirement benefits in several ways.
Reduced Monthly Benefits
First, it might reduce your monthly benefit amount. Your benefit will be reduced accordingly if you earn more than the Social Security earnings limit. The limit depends on your age, and we will discuss the limits in more detail later in this article.
Credit at Full Retirement Age
Even though your benefits are reduced when you work and earn more than the Social Security limit, you will receive credit for these reduced benefits upon reaching full retirement age. Your benefit amount will be recalculated to account for the amounts that Social Security previously withholds. So, even though your benefits are lower while you continue to work, the withheld amount will not be lost forever.
Earned Income vs Other Income
You should also know that only earned income counts toward the Social Security limit. Only money earned at a job or self-employment profit counts toward the limit. The income from retirement accounts, annuities, IRAs, or other similar sources will not affect the amount of your retirement benefit.
Tax on Social Security Benefits
In addition to a reduction in benefits, working past retirement might also cause your Social Security benefits to become taxable. Whether or not you pay income tax on your Social Security benefits depends on your total income. When assessing the taxability of your benefits, all your income will be counted. Income from retirement accounts or other “unearned” income will also count toward the total. If your benefits are taxed, only 50% or 85% of them will be taxed, depending on your total income.
KEY TAKEAWAYS
- Working while receiving Social Security retirement benefits may cause your benefits to decrease if you haven’t reached full retirement age.
- The SSA defines full retirement age (FRA) differently depending on your birth year. For everyone born in 1960 or later, the FRA is 67.
- Once you reach full retirement age, your benefits will not be impacted if you continue working and earning an income.
What Is Full Retirement Age?
Most people wait until full retirement age (FRA) to collect Social Security benefits, although you can start benefits early. Similarly, you can delay the start of your benefits past FRA to increase the amount of your benefit. Your benefits will be maxed out if you wait until age 70 for Social Security.
Remember how Social Security works? Starting your benefits early will reduce them, while starting them late will increase them. So, what is considered full retirement age? The answer depends on when you were born. Here are the details you need to know.
Over time, the Social Security Administration has had to raise the retirement age to account for retirees’ longer life expectancies. The following chart will guide you to the full retirement age.
| Year Born | Full Retirment Age |
|---|---|
Born Between 1943 and 1954 | Age is 66 |
Born in 1955 | Age is 66 and 2 months |
Born in 1956 | Age is 66 and 4 months |
Born in 1957 | Age is 66 and 6 months |
Born in 1958 | Age is 66 and 8 months |
Born is 1959 | Age is 66 and 10 months |
Born in 1960 or Later | Age is 67 |
Remember that waiting past your full retirement age can increase your Social Security income. Your benefits will increase by ~8% each year you delay starting them. Once you reach age 70, your benefits have maxed out. Therefore, there is no reason to wait past age 70 to start your benefits.
Similarly, starting your benefits before the full retirement age will reduce your benefits. You can begin your benefits as early as age 62, but you will only receive 70% of your primary insurance amount.
You can try our Social Security Break Even Calculator to see how retiring early affects your benefits.
Social Security Income Limits Before Full Retirement Age
If you start your Social Security benefits before reaching full retirement age, continuing to work will significantly affect how much Social Security pays during this timeframe. If you work part-time to maintain interaction with other people, you might not have to worry about the income limit. However, if you have a full-time job, you are likely to run into the limit and have your benefits reduced. Here is how continuing to work before full retirement age will affect your benefits.
In 2025, the Social Security income limit is $23,400 (up from $22,320 in 2024) if you are under full retirement age for the entire year. For every $2 you earn above this limit, your benefits will be reduced by $1.
| Age | Earned Income Limit For 2024 | Earned Income Limit For 2025 | Witholding 2024/2025 |
|---|---|---|---|
Under Full Retirement Age | $22,320 | $23,400 | Benefit decreases by $1 for every $2 over the limit |
Example of Benefit Reduction
Let’s look at an example. First, we will assume you are under full retirement age for the entire year. Next, let’s assume that you earn $35,400 by working a full-time job all year. You can see that this is $12,000 more than the 2025 earnings limit. Your benefits will be reduced by $1 for every $2 you earn over the limit, so your benefits will be reduced by $6,000 for the year, or $500 each month.
Remember that you will not lose those benefits forever. Once you reach full retirement age, your benefit amount will be adjusted to account for the previously withheld benefits. So, you should see an increase in your payment amounts once you hit your full retirement age. Speaking of reaching full retirement age, a different limit applies for the year you reach this age.
You can read more here on What Types Of Income Count Towards The Social Security Income Limit.
Social Security Income Limit During The Year You Reach Full Retirement Age
In 2025, the earnings limit for the year in which you reach full retirement age is $62,160 (up from $59,520 in 2024). Likewise, your benefits are reduced by $1 for every $3 you earn above this limit.
| Age | Earned Income Limit For 2024 | Earned Income Limit For 2025 | Witholding 2024/2025 |
|---|---|---|---|
Year You Reach Full Retirement Age | $59,520 | $62,160 | Benefit decreases by $1 for every $3 over the limit |
So, using the previous example, your benefits would not be reduced during the year you reach full retirement age. But suppose you had annual earnings of $92,160 that year. Since that amount is $30,000 above the limit, your benefits would be reduced by $10,000 that year.
So, what happens when you reach full retirement age? We’ll discuss that in detail in the next section.
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Social Security Income Limits After Full Retirement Age
You’ve learned how working before full retirement age affects your benefits, including during the year in which you reach full retirement age. So, what happens to your Social Security payments once you reach full retirement age? Will working continue to reduce your payments? The answer is no. Beginning in the month you reach full retirement age, your benefits will no longer be affected by working.
No Income Limit
There is no limit to the amount you can earn, and your benefits will not be reduced. Even earning over $100,000, you will still receive your full benefit amount.
Recalculation of Benefits
In addition, the Social Security Administration will recalculate your benefit payment to account for the previously withheld benefits. You will get credit for the months your benefits were reduced or withheld.
You should also know that the Social Security Administration has a special rule regarding the earnings limit for retirees who apply for benefits mid-year and whose earnings are over the limit. The SSA will pay full benefits for the months the retiree is considered “retired.”
It’s also important to note that even though your benefits will no longer be reduced after reaching FRA, they might become taxable if your yearly earnings are too high.
Reporting Excess Wages To The Social Security Administration
So, how will the Social Security Administration know you earned more than the annual limit? The answer is that you will need to tell them. If you will earn more than the earnings limit, you should notify the Social Security Administration immediately. This notification will allow them to properly adjust your benefits so that you are getting the correct direct deposit amount each month. Failure to notify the SSA could have adverse consequences.
Repayment of Benefits & Fees
The SSA will eventually find out if you fail to notify them that you will make more than the earnings limit. When you file your income taxes the following year, they will know that you made more than the limit in the previous year. If you were still receiving full benefits during the last year, that could spell bad news for your wallet. You will likely be forced to repay the excess benefits that you received. In addition, you might even owe some penalties and fees on those excess benefits.
Therefore, it is vital to notify the Social Security Administration immediately if you think you might make more than the earnings limit before reaching full retirement age. You should consult a licensed advisor if you have any questions about how it might affect your payments. They can advise you on the best approach for your financial situation.
How Working Affects The Taxation Of Your Benefits
You now know how work affects your benefit payment amounts, but did you know that working can also affect whether or not your benefits are taxed? There is also an earnings test regarding the taxability of your retirement benefits. Unlike the earnings test used for potential benefit reduction, almost all your income counts toward the taxability of your Social Security benefits. Even retirement plan income, like IRA or 401k withdrawals, counts toward the annual limit.
Combined Income Limits
In 2024, if your combined income*, including half of your Social Security payments, exceeds $25,000, 50% of your benefits are likely taxable. For a married couple filing a joint tax return, this limit increases to $34,000.
If your combined income for the year exceeds $34,000, then up to 85% of your benefits will be taxable. For a married couple filing a joint tax return, this limit increases to $44,000.
A portion of Social Security is Never Taxed
These limits are not usually met for beneficiaries who rely solely on Social Security. However, if you have retirement income from other sources, it likely means that you will pay taxes on a portion of your Social Security benefits. No more than 85% of your Social Security benefits will be taxable, meaning at least 15% of your benefits will never be taxed, regardless of your total income.
*Combined income = your adjusted gross income + nontaxable interest + 1/2 your social security benefits.
TIP
If you are working while receiving Social Security benefits before reaching full retirement age, informing the SSA of your income is critical. Failure to notify the SSA ahead of time may result in needing to repay benefits plus fees.
Social Security Disability Benefits (SSDI) Income Limits
You might wonder, “How much can I earn while on Social Security disability in 2025?” The answer can be a bit complicated, but here are the details.
By receiving disability benefits, you have been found unable to perform substantial gainful activity. In essence, this means that you cannot work due to your disability. So, working while receiving a disability benefit is contradictory. However, you can have some income without affecting your disability insurance payments.
In 2025, you can earn up to $1,620 monthly (up from $1,550 in 2024) without affecting your disability payments. For people who are blind, the limit increases to $2,700 (up from $2,590 in 2024)
SSDI Trial Period
In addition, the Social Security Administration encourages disability recipients to return to work when possible. To help with this, the SSA allows a trial work period during which benefit recipients may earn unlimited income without affecting their benefits.
Trial Period Length
For 2025, any month in which a person earns more than $1,160 (up from $1,110 in 2024) is considered to be a trial work month. The trial work period lasts for nine months, and the months do not have to be consecutive. This allows a person to have nine months of unlimited income without any effect on their benefits so they can test their ability to return to work.
Extended Eligibility
After the trial work period ends, the person still has an extended eligibility period. This means that the person will receive SSDI benefits during the months in which they earn less than $1,620 (up from $1,550 in 2024), but they will not receive benefits during the months in which they earn more than this amount.
There is also a five-year period during which benefits can be quickly reinstated if the person is again unable to work due to their disability.
Supplemental Security Income (SSI) Income Limits
In 2025, individual SSI recipients can earn up to $967 per month (up from $943 in 2024), and couples can earn up to $1,450 (up from $1,415 in 2024). You can also not own more than $2,000 worth of assets ($3,000 for a couple), like bank accounts, household goods, etc.
It’s essential to remember that the rules surrounding countable income can be complicated. You can earn more than the income limit and still qualify, as the SSA doesn’t count certain income towards this limit. You can read about what income is not counted in the SSA’s Income Exclusions for SSI.
For students receiving SSI, the income exclusion amount is $2,350 per month (up from $2,290 in 2024), up to an annual limit of $9,460 (up from $9,230 in 2024). Some states that offer additional payments may have a higher income limit for SSI recipients.
The Bottom Line
Working while receiving Social Security benefits can affect your payment amounts before you reach full retirement age. Your benefits will be reduced according to how far over the earnings limit you go.
However, once you reach full retirement age, there is no limit to how much you can earn. After reaching this age, your benefits will not be reduced because of your income, regardless of how high your income is.
Even though your Social Security check will not be reduced due to your income, it might become taxable if your income is too high. Since most retirees utilize Medicare for health care, your income might also increase your Part B premium.
Frequently Asked Questions
Yes, you can draw Social Security at 62 and still work full-time. However, you should know that continuing to work before you reach full retirement age might reduce your benefits. If you earn more than the Social Security earnings limit, the Social Security Administration will reduce your benefits accordingly.
Spousal and survivor benefits have slightly different rules than traditional retirement benefits, so make sure you know the exceptions. You can use the Social Security benefits calculator online to learn more about how your benefits might be affected by working.
For 2025, you can earn no more than $967 ($1,450 for couples) monthly and continue receiving SSI payments. In addition, you can have no more than $2,000 of countable assets ($3,000 for couples).
This program is designed to help low-income individuals and families. Therefore, the income and asset limits are pretty low. Qualifying for SSI can also help you qualify for other assistance programs, like housing assistance, Medicaid, food stamps, etc.
One of the pros of working while collecting Social Security is increasing your total income. However, working while collecting Social Security can decrease your Social Security payments. Thankfully, the payment decrease does not last forever, and you will eventually get credit for the reduction.
Once you reach full retirement age, your benefits will no longer be reduced based on your income. Similarly, you will receive credit for the months your benefits were reduced or withheld.
You can work full-time at age 66 and still collect Social Security. If your full retirement age is 66, there is no limit to how much you can earn while receiving Social Security. If you wonder, “At what age can you earn an unlimited income on Social Security,” the answer is full retirement age.
Upon reaching full retirement age, earned income will no longer affect your benefits. So, if you wish to work full-time, you can do so and still receive your full benefit payments each month. This could lead to a significant income during your “retirement” years.
You can find a Social Security Administration office near you by using our SSA office locator and searching for your closest location.
