Working While on Social Security

You are allowed to collect Social Security while still working. If you’re making a higher income compared to previous years, it could potentially give you a larger benefit to support you during your retirement years.

What age you are when collecting benefits and working can alter your benefit amount. If you’re under your full retirement age (FRA), your benefit will be affected.

Continuing to work while receiving benefits can affect your retirement benefit amount in one of two ways.

If you don’t want your benefits to be reduced, delay receiving your benefits until you reach your full retirement age. After you turn your full retirement age, there is no cap on how much you can earn while receiving benefits.

Your full retirement age (FRA) is when you can claim 100% of your Social Security benefit. Not everyone has the same FRA — it varies depending on what year you were born. For example, if you were born in 1997, you will reach your FRA when you turn 67.

If you choose to start receiving benefits before you reach your full retirement age, your benefit will be reduced, whether you choose to continue to work or not. The Social Security Administration has example benefit amounts on their personalized statement, which shows how your age can affect your retirement benefit amount.

The statement shows a sharp difference between someone getting benefits before and at their FRA. At 67 years old, the statement shows a retirement benefit amount of $2,119 a month. When choosing to collect benefits early at 62 instead, the benefit amount drops to $1,465 a month. Note that benefit amounts are from a personalized example of a Social Security statement and won’t reflect your own benefit amounts.

Use the chart below to determine what your full retirement age is.

If you continue to work after you reach your full retirement age, there is no limit to how much you can earn while receiving Social Security benefits. There are limits on how much you can earn if you’re under your full retirement age.

*These earnings are only accounted for up to the month you turn your full retirement age, not the entire year.

Once you reach your full retirement age, the Social Security Administration will recalculate your benefit to return the amount that was reduced or withheld from your excess earnings. You won’t get the money back in one large lump-sum — it will come back over time through your recalculated benefits.

The earnings cap can also apply to survivors and disability benefits.

Your wages and income from self-employment count as earnings for Social Security. There is a variety of income that won’t count as earnings and affect your benefits.

Refer to the list below when determining what will count as your earnings.

You can report a change in your earnings to Social Security by calling them, updating your information online or visiting a local Social Security office near you.

If you’re trying to update your earnings and you receive Supplemental Security Income (SSI), you can also use the free SSI Mobile Wage Reporting Smartphone app.

If you earn too much and haven’t yet reached your FRA, your benefit amount will be reduced.

If you’re under your FRA for an entire year, $1 of will be deducted from your benefit payments for every $2 you earn above the annual limit. The annual limit in 2023 is $21,240.

In the year you reach your full retirement age, $1 will be deducted in benefits for every $3 you earn above a different annual limit. This annual limit is $56,520 in 2023.

Once you reach your FRA, there is no limit to how much you can earn.

If Social Security is your only income, you likely won’t pay taxes on your retirement benefits. However, if you’re working while receiving Social Security, part of your benefit could be taxed.

To determine how much of your benefit is taxable, the Social Security Administration uses a term called “combined income.” Combined income is the combination of your adjusted gross income, nontaxable interest and half of your Social Security benefit.

Regardless of your income level, no more than 85% of your Social Security benefits can be taxed.

Editor Samantha Connell contributed to this article.