Social Security Earnings Limits: How Working Affects Your Benefits

Understanding the Intersection of Work and Social Security Benefits

Many beneficiaries wonder about working while receiving Social Security benefits. The answer varies based on your specific situation, primarily your age and how much you earn. The Social Security Administration has established clear guidelines that all beneficiaries should understand before making employment decisions.

Social Security has implemented specific earnings limits for individuals receiving retirement, spouse, or survivor benefits. Understanding these regulations is essential if you currently receive Social Security benefits or will soon, especially if you plan to continue working. This knowledge helps prevent potential overpayment situations that could complicate your planning for Social Security retirement benefits.

When receiving Social Security benefits, you must report any changes that could affect your eligibility or benefit amount, including changes in your employment status. Failure to report earnings accurately or promptly may result in overpayments that you’ll need to repay.

Important: Different rules apply if you receive Social Security disability benefits or Supplemental Security Income. In these cases, all earnings must be reported regardless of amount.

Earnings Limitations Based on Age for Social Security Recipients

The following rules apply to recipients of retirement, spouse, or survivor benefits under Social Security:

• If you are below full retirement age (FRA) for the entire year, you may earn up to $23,400 in 2025 without any benefit reduction. For earnings exceeding this threshold, $1 will be deducted from your Social Security benefits for each $2 earned above the limit.
• If you reach FRA during 2025, you may earn up to $62,160 between January and your birthday month. Benefits will be reduced by $1 for each $3 earned above this amount until the month you reach FRA.
• Upon reaching full retirement age, no earnings limits apply—you may work and earn without restrictions while receiving your full Social Security benefits.

Only wages count toward these Social Security earnings limits. Pensions, annuities, investment income, interest, and government benefits are excluded from the calculation. For self-employed individuals, only net earnings from self-employment are considered.

Mid-Year Retirement Provision for Social Security

If retirement occurs mid-year after already exceeding the annual limit ($23,400 in 2025), a special monthly rule applies. Under this provision, your Social Security benefits remain unreduced if monthly earnings fall below $1,950 for each remaining month of the year following retirement.

For comprehensive examples of these rules, consult How Work Affects Your Benefits. The Social Security earnings test calculator can also help determine potential impacts on your benefit payments.

Benefits are adjusted based on your provided earnings estimate. Promptly notify Social Security at 1-800-772-1213 if your actual earnings differ from initial estimates. Your employer will report your actual 2025 earnings to Social Security. Any overpayments must be adjusted or recovered as required by law.

Potential Social Security Benefit Increases

If benefits are withheld due to earnings, your Social Security benefit amount will increase upon reaching FRA.

Additionally, continued employment may increase your monthly benefit amount. Social Security automatically reviews records annually for all working beneficiaries. If your most recent earnings rank among your highest years, your benefit will be recalculated with any entitled increase paid accordingly. Learn more about delaying your Social Security retirement benefits for higher monthly payments.

For additional information, visit the “Receiving Benefits While Working” page on the Social Security website.

Please share this information with individuals who may be considering employment while receiving Social Security benefits.