How Much Can You Work and Still Get Social Security?
Decipher the interplay between your work earnings and Social Security benefits. Understand how the system accounts for your income.
Social Security benefits provide income for millions of individuals during retirement. Many recipients find themselves in situations where they wish to continue working, either part-time or full-time, after beginning to receive these benefits. Navigating the interaction between earned income and Social Security payments can be complex, as certain earnings thresholds can affect the amount of benefits received. This article clarifies how working while collecting Social Security benefits may impact those payments, helping individuals understand the relevant rules and plan accordingly.
Earnings Limits Before Full Retirement Age
For individuals who begin receiving Social Security benefits before reaching their Full Retirement Age (FRA), specific earnings limits apply. Full Retirement Age is the age at which a person can receive their primary Social Security benefit amount without any reduction for starting benefits early. This age varies based on birth year; for instance, individuals born in 1960 or later have a Full Retirement Age of 67, while those born between 1943 and 1959 have an FRA between 66 and 66 years and 10 months.
In 2025, if you are younger than your Full Retirement Age for the entire year, the annual earnings limit is $23,400. Should your earnings exceed this amount, the Social Security Administration (SSA) will deduct $1 from your benefits for every $2 you earn above the limit. For example, if you earn $25,400 in 2025, which is $2,000 over the limit, your annual benefits would be reduced by $1,000 ($2,000 / 2).
The types of income that count toward this earnings limit primarily include wages from employment and net earnings from self-employment. Income sources such as pensions, investment income, interest, annuities, capital gains, government retirement benefits, and IRA distributions typically do not count against these limits.
A special rule exists for the first year you begin receiving benefits, particularly if you retire mid-year. Under this rule, you can receive a full Social Security check for any month in which your earnings fall below a specific monthly threshold, regardless of your total annual earnings. In 2025, for those under Full Retirement Age, this monthly limit is $1,950.
Earnings Limits in Your Full Retirement Age Year
A different, higher earnings limit applies specifically in the calendar year you reach your Full Retirement Age. For 2025, the earnings limit for the year you reach FRA is $62,160.
For earnings above this limit, the benefit reduction rate is more favorable: the SSA deducts $1 from your benefits for every $3 earned over the threshold. For instance, if you earn $65,160 in the year you reach FRA, which is $3,000 above the limit, your benefits would be reduced by $1,000 ($3,000 / 3).
Only earnings accumulated before the month you actually reach your Full Retirement Age count toward this specific limit. Any income earned from the month you attain FRA onward does not affect your Social Security benefits, regardless of the amount. For example, if your FRA is in August 2025, only your earnings from January through July count towards the $62,160 limit.
The special first-year rule also applies in your FRA year, but with a higher monthly earnings threshold. If you are considered retired, you can receive a full benefit for any month before your FRA where your earnings are $5,180 or less in 2025.
Working at or After Full Retirement Age
Once an individual reaches their Full Retirement Age, the earnings limits that applied in previous years no longer apply. This means that beneficiaries can earn any amount of money from work without their Social Security benefits being reduced or withheld. This provides financial flexibility for those who wish to continue working full-time or part-time without concern for benefit impacts.
Understanding Benefit Withholding
The Social Security Administration has a process for managing benefits when an individual’s earnings exceed the established limits. If your earnings surpass the applicable threshold, the SSA will typically withhold your entire monthly benefit checks until the total amount withheld equals the calculated excess earnings. For instance, if $1,500 in benefits needs to be withheld and your monthly payment is $750, the SSA might withhold two full monthly checks.
It is important for beneficiaries to accurately report their estimated and actual earnings to the SSA. When you first apply for benefits while still working, the SSA will ask for an estimate of your annual earnings. This initial estimate helps them determine how much, if any, of your benefits should be withheld.
If you report earnings late or estimate incorrectly, adjustments will be made. If you earned less than estimated, the SSA may owe you benefits, which could be paid as a lump sum or added to future payments. Conversely, if you earned more than initially estimated, you may experience further withholding or even be required to repay an overpayment to the SSA.
Upon reaching your Full Retirement Age, the SSA conducts a recalculation of your benefits. This process gives you credit for any benefits that were previously withheld because of the earnings test. The recalculation typically results in a higher permanent monthly benefit amount, compensating for the earlier reductions.