Can You Stop Social Security and Go Back to Work?

Social Security benefits provide a foundational income source for many individuals in retirement. As circumstances evolve, some beneficiaries consider returning to the workforce or adjusting their claiming strategy. Working while receiving benefits, or pausing and restarting them later, involves specific rules and financial impacts. Understanding these provisions helps navigate the complexities of Social Security and make informed choices about retirement income.

Earning Income While Receiving Benefits

Working while receiving Social Security benefits can affect the monthly amount an individual receives, especially if they are below their full retirement age (FRA). The Social Security Administration (SSA) applies specific “earnings limits” to determine if benefits should be reduced. These limits depend on the beneficiary’s age relative to their FRA, which varies by birth year (generally ages 66-67).

For beneficiaries under their full retirement age for the entire year, the SSA deducts $1 in benefits for every $2 earned above the annual earnings limit. In 2025, this limit is $23,400. For example, if someone earns $25,000 in 2025, which is $1,600 over the limit, their annual benefits would be reduced by $800. This reduction applies to gross wages or net self-employment earnings, including bonuses and commissions.

A different rule applies in the year a beneficiary reaches FRA. In this scenario, the SSA deducts $1 in benefits for every $3 earned above a higher limit, which is $62,160 in 2025. Notably, only earnings up to the month before reaching FRA count toward this limit. Once a beneficiary reaches FRA, earnings limits no longer apply, allowing them to earn any amount without their Social Security benefit reduction.

Voluntarily Suspending Retirement Benefits

Individuals who have reached their full retirement age (FRA) but are not yet age 70 have the option to voluntarily suspend their Social Security retirement benefits. This active decision differs from automatic reductions due to earnings limits. The primary reason to suspend benefits is to earn “Delayed Retirement Credits” (DRCs), which will result in a higher monthly benefit amount when payments restart.

Delayed Retirement Credits increase the monthly benefit for each month benefits are delayed past FRA, up to age 70. For those born in 1943 or later, this increase is 8% per year (approximately two-thirds of 1% per month). Delaying benefits for one year past FRA results in an 8% increase in the monthly benefit.

To request a voluntary suspension, contact the Social Security Administration by phone, in writing, or in person at a local SSA office. The suspension typically takes effect the month after the request is made. If benefits are suspended, any dependents receiving benefits based on that individual’s earnings record (e.g., a spouse or children) will also have their benefits suspended, except for a divorced spouse.

Restarting Benefits After Suspension

After a period of voluntary suspension, beneficiaries can restart their Social Security payments by notifying the SSA. Benefits can be reinstated at any time before age 70. The process for restarting benefits is straightforward and can typically be done over the phone, in writing, or in person at an SSA office.

Once a request to restart benefits is made, payments resume the following month. If a beneficiary does not actively request to restart benefits, the SSA automatically reinstates them at the increased amount (reflecting earned Delayed Retirement Credits) once the individual reaches age 70. This automatic restart ensures beneficiaries receive their maximum possible benefit amount if they choose to delay claiming until age 70.

This flexibility allows individuals to reactivate payments if financial needs or work plans change after suspension. For example, if an individual suspended benefits to continue working but then retires, they can easily reactivate payments. The increased monthly amount from earned Delayed Retirement Credits then applies to ongoing payments.

Understanding Benefit Adjustments and Repayments

Working while receiving Social Security benefits or suspending them can lead to financial adjustments, both positive and negative. Positive adjustments come from Delayed Retirement Credits (DRCs), which significantly increase the monthly benefit for those who delay claiming past their full retirement age (FRA) up to age 70. For every year benefits are delayed beyond FRA, the monthly amount increases by 8%, providing a substantial boost to lifetime income. These credits accumulate monthly and apply to future benefit payments, with full impact by age 70.

Conversely, if a beneficiary receives more Social Security benefits than entitled to, it leads to an “overpayment.” Common causes of overpayments include exceeding earnings limits without timely reporting income changes, administrative errors by the SSA, or changes in living or marital status that affect eligibility. Promptly reporting any changes in income or circumstances is important to avoid overpayments.

If an overpayment occurs, the SSA sends a notice explaining the situation and amount owed. The SSA has several methods for recovering overpayments, including reducing or withholding future benefits. If an overpayment notice is received, beneficiaries have options: repay the amount, request reconsideration if they believe it’s incorrect, or request a waiver if they were not at fault and cannot afford repayment. A waiver request requires demonstrating the overpayment was not the individual’s fault and repayment would cause financial hardship. It is also possible to negotiate a payment plan with the SSA to repay the amount in monthly installments.