How Much Money Can I Make at Full Retirement?
Learn how your earnings truly impact Social Security once you reach full retirement age. Gain clarity for your financial future.
Individuals approaching retirement often consider how working might impact their Social Security benefits. Understanding the Social Security Administration’s guidelines on earned income is important for financial planning. These guidelines specify how earned income can affect benefit payments, particularly depending on an individual’s age relative to their full retirement age.
Understanding Full Retirement Age
Full Retirement Age (FRA) is the age set by the Social Security Administration when an individual becomes eligible to receive 100% of their Social Security benefits. This age is determined by the individual’s birth year. For example, those born between 1943 and 1954 have an FRA of 66.
FRA gradually increases for individuals born after 1954. For those born in 1955, FRA is 66 and 2 months, increasing by two months for each subsequent birth year until it reaches 67 for individuals born in 1960 or later. Claiming benefits before reaching your FRA results in a permanent reduction in monthly payments.
Earnings Limits Before Full Retirement Age
Social Security beneficiaries who have not yet reached their Full Retirement Age are subject to annual earnings limits. If an individual earns more than this limit, a portion of their Social Security benefits will be withheld. For 2025, if an individual is under their Full Retirement Age for the entire year, the earnings limit is $23,400. For every $2 earned above this limit, $1 in benefits will be deducted.
A different rule applies in the calendar year an individual reaches their Full Retirement Age. For 2025, the earnings limit for the months prior to reaching FRA is $62,160. In this scenario, $1 in benefits will be withheld for every $3 earned above the limit. These deductions only apply to earnings accrued before the month an individual reaches their Full Retirement Age, not for the entire year. Benefits withheld due to these earnings limits are not permanently lost; they are factored into a recalculation that can lead to higher monthly payments in the future.
Working at Full Retirement Age
Once an individual reaches their Full Retirement Age, there are no limits on how much they can earn from working while receiving Social Security benefits. Their benefits will not be reduced or withheld due to their earnings.
For Social Security purposes, “earnings” include wages from employment and net earnings from self-employment. Many other forms of income do not count toward these earnings limits, such as pensions, annuities, investment income, interest, capital gains, and government or military retirement benefits. While working at Full Retirement Age does not impact benefit amounts directly through earnings limits, higher earnings can lead to a recalculation of future benefits if a new earning year replaces a lower-earning year in the Social Security earnings record.
Additionally, Social Security benefits can become subject to federal income tax if an individual’s total income, including their Social Security benefits, exceeds certain thresholds. For 2025, if combined income is between $25,000 and $34,000 for single filers, up to 50% of benefits may be taxed; above $34,000, up to 85% may be taxed. For joint filers, these thresholds are $32,000 and $44,000, respectively.
Reporting Earnings to Social Security
Individuals receiving Social Security benefits who are under their Full Retirement Age must report their earnings to the Social Security Administration. This ensures accurate benefit calculations and prevents overpayments or underpayments. Earnings should be reported promptly, typically by the 6th of the month following the work.
While individuals at or past their Full Retirement Age are not subject to earnings limits, they generally do not need to report earnings to Social Security for earnings limit purposes. However, self-employed individuals still must report their net earnings. Regardless of age, all income is subject to standard tax reporting requirements with the Internal Revenue Service. Individuals can report wages online through their “my Social Security” account, by mail, or by visiting a local Social Security office. Keep detailed records, such as pay stubs, to verify earnings if needed.