A lot of people assume that once you start Social Security, you can’t work anymore. But here’s the good news:
You absolutely can.
You just need to understand how your age and earnings affect your monthly benefits. This guide explains everything in plain English to help you earn income without surprises.
What Is Full Retirement Age (FRA)?
Your Full Retirement Age (FRA) is when you can collect 100% of your benefits — even if you continue working.
For anyone born in 1960 or later, your FRA is 67 years old.
Here’s how earnings affect your benefits based on your age:
- Before FRA: Your benefits may be reduced if you earn over a certain limit.
- The year you reach FRA: A higher limit applies, and only income before your birthday month counts.
- After FRA: There’s no earnings limit at all — you keep 100% of your benefits no matter what.
Earnings Limits Before FRA
In 2025, if you haven’t reached FRA, you can earn up to $22,320/year (around $1,860/month) without affecting your benefits. If you earn more, the SSA will reduce your benefits by $1 for every $2 over the limit.
Example:
Let’s say Linda, age 64, is receiving $1,500/month in Social Security. She earns $30,000/year at her part-time job.
- Amount over the limit: $30,000 – $22,320 = $7,680
- Benefit reduction: $7,680 ÷ 2 = $3,840
- Monthly benefit adjustment: $1,500 – ($3,840 ÷ 12) = ~$1,180/month
The SSA typically withholds full checks for a few months to cover this, then resumes normal payments.
The Year You Reach FRA
The rules shift slightly in the year you hit full retirement age.
- In 2025, the higher earnings limit is $59,520/year
- Only earnings before your birthday month count
- SSA deducts $1 for every $3 over the limit
Example:
If Linda turns 67 in July 2025 and earns $80,000 from Jan to June:
- Earnings counted: $80,000
- Over the limit: $80,000 – $59,520 = $20,480
- Benefit reduction: $20,480 ÷ 3 = $6,826.67
After her birthday, she gets her full benefit no matter how much she earns.
After Full Retirement Age
Once you reach FRA, you can work as much as you want with zero benefit reduction.
Whether it’s a full-time job, part-time gig, or consulting, Social Security doesn’t touch your payments anymore. You’re free to earn without limits.
Recalculation of Benefits
Here’s a nice bonus: If your benefits were reduced before FRA due to earnings, SSA recalculates them once you hit FRA.
So the money you “lost” isn’t gone forever it’s just delayed. You may also get a boost if your recent earnings replace lower-earning years in your record.
Tips to Balance Work and Benefits
- Use SSA’s earnings estimator (ssa.gov) to check how income affects your benefits
- Consider flexible or seasonal work if you want to stay under limits
- Delay benefits if you don’t need them yet they increase by 8% each year until age 70
- Track your earnings especially if self-employed
- Talk to a financial planner for a custom retirement income strategy
FAQ
Q: What income counts toward the limit?
Only wages and self-employment income count. Not included: pensions, dividends, or rental income
Q: Does the limit apply to self-employed people?
Yes. The SSA uses net income (after expenses). You may need to report your estimates in advance.
Q: What about spousal benefits?
If you’re receiving spousal benefits before FRA, the same earnings limits apply.
Final Thoughts
Yes – you can work while getting Social Security.
Just know the rules, track your income, and plan smart. Whether you’re working for fulfillment or finances, it’s good to know your benefits won’t disappear they’ll just adjust temporarily.
📌 Stay informed. Visit ssa.gov or speak with a trusted advisor for personalized help.
