It’s a common question for those nearing retirement or already receiving benefits: Can you work and collect Social Security at the same time? The answer is yes, but it’s important to understand how your earnings might affect your benefits, especially if you haven’t reached your full retirement age. Social Security Administration (SSA) allows you to work while receiving retirement benefits, but there are earnings limits that could temporarily reduce your payments.
Understanding the Earnings Limit Before Full Retirement Age
If you are younger than your full retirement age for the entire year, there’s a limit on how much you can earn before your Social Security benefits are reduced. For every $2 you earn above the annual limit, your benefits will be reduced by $1.
In 2025, this annual earnings limit is $23,400.
This means if you earn more than $23,400 in 2025 and are under full retirement age for the entire year, you will see a reduction in your Social Security benefits.
Alt text: A senior woman smiles as she works on her laptop in her home office, representing the possibility of working during retirement and managing social security benefits.
Special Rule for the Year You Reach Full Retirement Age
There’s a different rule if you are reaching your full retirement age in 2025. For the months before you reach full retirement age, a higher earnings limit applies.
In 2025, the earnings limit for the months before you reach full retirement age is $62,160.
For every $3 you earn above $62,160 in those months, your benefits will be reduced by $1. However, once you reach your full retirement age, the rules change significantly.
No Earnings Limit Once You Reach Full Retirement Age
Starting with the month you reach your full retirement age, there is no limit on how much you can earn and still receive your full Social Security benefits. You can earn any amount without any reduction in your benefits. This is a significant advantage for those who choose to continue working into their full retirement years.
To find out your full retirement age, you can use the Retirement Age Calculator provided by the Social Security Administration. If you want to estimate how much your benefits might be reduced based on your earnings, you can use the Retirement Earnings Test Calculator.
What Counts as Earnings for Social Security?
When Social Security calculates your earnings for these limits, they primarily consider:
- Wages from your job
- Net earnings from self-employment
This includes:
- Bonuses
- Commissions
- Vacation pay
However, not all income counts as earnings for Social Security purposes. The following are not included:
- Pensions
- Annuities
- Investment income
- Interest
- Veterans benefits
- Other government or military retirement benefits
Understanding what counts as earnings is crucial for accurately estimating how your work might affect your Social Security benefits.
Alt text: Hands are shown typing on a computer keyboard, representing the work and earnings that are considered when determining social security benefit adjustments.
Working Can Increase Your Future Social Security Benefits
Even if your benefits are temporarily reduced due to earnings before full retirement age, working while receiving Social Security can still be beneficial in the long run. As you continue to work and pay Social Security taxes, the SSA reviews your earnings record annually. If your additional earnings increase your average lifetime earnings, your monthly benefit amount will be recalculated and could increase. The SSA will notify you if your benefit amount is increased.
Reporting Changes in Your Earnings
It’s important to keep the Social Security Administration informed about your earnings, especially if you are under full retirement age. If you anticipate a significant change in your earnings compared to what you initially reported, you should contact Social Security right away. You can reach them at 1-800-772-1213 (TTY 1-800-325-0778) or contact your local Social Security office. Staying proactive and reporting changes helps ensure you receive the correct benefit amount and avoid any potential overpayments or underpayments.
Working and Social Security Benefits: Key Takeaways
- You can work and receive Social Security retirement benefits at the same time.
- If you are under full retirement age, there are earnings limits that may reduce your benefits.
- In 2025, the annual earnings limit for those under full retirement age for the entire year is $23,400.
- For the months before reaching full retirement age in 2025, the limit is $62,160.
- Once you reach full retirement age, there is no earnings limit.
- Working can potentially increase your future Social Security benefits.
- Report any significant changes in your earnings to the Social Security Administration.
For more detailed information, you can visit the Social Security Administration’s website. If you are working outside the United States, different rules may apply, and you should consult the Social Security Office of Earnings & International Operations for specific guidance.
