How Many Hours Can You Work and Still Collect Social Security?

Many individuals consider working during retirement, often wondering how their earnings might interact with Social Security benefits. It is possible to receive Social Security payments while working, but specific rules apply depending on your age and income. This article clarifies the earnings limitations and reporting requirements established by the Social Security Administration.

Earnings Limits Before Full Retirement Age

Individuals who begin collecting Social Security benefits before reaching their full retirement age (FRA) are subject to specific annual earnings limits. For 2025, if you are under your full retirement age for the entire year, the annual earnings limit is $23,400. If your earnings exceed this threshold, a portion of your Social Security benefits will be temporarily withheld. The Social Security Administration (SSA) will deduct $1 in benefits for every $2 you earn above this annual limit.

For example, if you are due $9,600 in Social Security benefits for the year and earn $30,000, your earnings exceed the $23,400 limit by $6,600. The SSA would then withhold $3,300 in benefits ($6,600 divided by 2). This means you would receive $6,300 of your scheduled benefits for the year ($9,600 minus $3,300).

Full retirement age varies based on your birth year. For individuals born in 1960 or later, the full retirement age is 67. Those born between 1943 and 1959 have an FRA between 66 and 67, with the exact age determined by their specific birth year and month. Your specific full retirement age dictates when these earnings limits no longer apply.

Earnings Limits in the Year You Reach Full Retirement Age

A different set of earnings limits applies in the calendar year an individual reaches their full retirement age. For 2025, the earnings limit for the months before you reach your full retirement age is $62,160.

The withholding rule in this specific year is more favorable: $1 in benefits is withheld for every $3 earned above this higher limit. This withholding only applies to earnings in the months before the month you attain your full retirement age. Once you reach your FRA, earnings limits no longer apply for the remainder of that year or any subsequent year.

Consider an example where you reach your full retirement age in August 2025 and your total earnings for the year are $69,000, with $63,000 earned from January through July. Since $63,000 exceeds the $62,160 limit by $840, your benefits would be reduced by $280 ($840 divided by 3) for the months leading up to August. From August onward, you would receive your full Social Security benefit, regardless of how much you earn.

Impact of Exceeding Earnings Limits

When an individual’s earnings surpass the applicable limits, the Social Security Administration (SSA) will withhold benefits. These withheld benefits are not permanently lost. Instead, the SSA adjusts your benefit payments, typically by withholding entire monthly checks until the excess earnings have been accounted for.

The benefits withheld due to exceeding earnings limits are factored into a recalculation of your benefits once you reach your full retirement age. At that point, your past earnings are reviewed, and your benefit amount may be increased. This adjustment accounts for the months where benefits were withheld, effectively giving you credit for those past earnings.

The SSA performs these recalculations automatically, ensuring that your benefit amount reflects your complete earnings history. Therefore, exceeding the earnings limit primarily results in a temporary adjustment to benefit payments, rather than a permanent forfeiture of those funds.

Reporting Your Earnings

Individuals receiving Social Security benefits have a responsibility to accurately report their earnings to the Social Security Administration. This reporting helps the SSA determine the correct benefit amount and avoid overpayments or underpayments. It is important to provide estimated earnings, especially when you first begin receiving benefits or if your earnings change significantly throughout the year.

If you expect to earn more than the annual limit, you should inform the SSA as soon as possible to prevent having to repay overpaid benefits later. The SSA reviews earnings reported by employers and self-employed individuals, typically a year after the earnings occur. If the actual earnings differ from what was estimated, adjustments to benefits will be made. You can report your estimated earnings and update your information through various methods, including online, by phone, or in person at a local Social Security office.

Working Beyond Full Retirement Age

A significant advantage awaits individuals who continue to work after reaching their full retirement age: there are no earnings limits. Once you attain your full retirement age, you can earn any amount of money without your Social Security benefits being reduced or withheld. This provision allows individuals to supplement their retirement income freely without penalty.

This exemption from earnings limits applies from the month you reach your full retirement age onward. If you continue working past this point, your Social Security benefits will not be affected by your earned income. This policy encourages individuals to remain in the workforce if they choose, providing financial flexibility without compromising their Social Security payments.