Working While Collecting Social Security: What You Need to Know

Here’s the straightforward answer: yes, you can get Social Security and still work. But there’s a catch—if you haven’t reached your full retirement age and you’re earning above a specific threshold, the Social Security Administration will reduce your monthly payments temporarily.

The Earnings Limit Framework

The critical factor is your full retirement age (FRA), which varies by birth year:

• Born 1943-1954: age 66
• Born 1955: age 66 and 2 months
• Born 1956: age 66 and 4 months
• Born 1957: age 66 and 6 months
• Born 1958: age 66 and 8 months
• Born 1959: age 66 and 10 months
• Born 1960 or later: age 67

Before reaching FRA, the 2025 earnings limit is $23,400 (up from $22,320 in 2024). If you earn more than this, the SSA deducts $1 from your benefits for every $2 you earn over the cap. In the year you reach FRA, the limit jumps to $62,160, and the deduction formula becomes $1 for every $3 over that amount. Once you’ve hit FRA, there’s zero earnings penalty—earn as much as you want.

Real-World Calculation Examples

Let’s walk through how this actually impacts your payments:

Scenario 1: Below FRA, Modest Overage

You’re 63, collecting $900 monthly ($10,800 annually), and earn $24,000 that year. You’re $600 over the $23,400 limit. The SSA withholds $300 from your annual benefits (half of $600). That might mean your first benefit check is completely skipped, or the reduction is spread across multiple months.

Scenario 2: Below FRA, Significant Earnings

Same age and monthly benefit, but you earn $28,400—$5,000 over the limit. Your annual benefits get reduced by $2,500. If that exceeds a single month’s payment, multiple checks get withheld entirely until the threshold is met. Any excess withholding gets refunded in the following year.

Scenario 3: Reaching FRA Mid-Year

You’ll reach FRA in November 2025. You collect $900 monthly and expect to earn $78,200 total, but only $65,160 between January and October (before you hit FRA). That $65,160 is $3,000 over the $62,160 limit, so your annual benefit reduction is $1,000. Two months of benefits get fully withheld to cover this, and you get your full payment starting in November onward.

Why You’re Not Permanently Losing Money

Here’s the good news: the SSA doesn’t permanently slash your benefits. If money was withheld before you reached FRA, you get it back in two ways:

1. Any excess withheld amounts are refunded the following year
2. Once you hit FRA, your entire benefit gets recalculated upward to credit you for all the months benefits were reduced or withheld

That recalculated, higher benefit applies to all future payments—permanently.

What Earnings Actually Count?

The SSA specifically tracks wages, commissions, bonuses, and vacation pay. They ignore pensions, annuities, investment income, interest, and veterans benefits. If you’re self-employed, they count net profit.

The Spousal Benefit Question

Can you get Social Security and still work if you’re claiming spousal benefits? Yes, but the same earnings test applies. If you haven’t reached FRA and your post-filing earnings exceed $23,400, your spousal benefit can be partially or fully withheld. However, if your spouse is the one still working before reaching FRA, their earnings might affect their own benefit amount—which could indirectly reduce your spousal payment if it’s calculated based on their reduced amount.

The Bottom Line

Working while drawing Social Security before FRA requires careful calculation, but it’s entirely possible. The temporary reductions are exactly that—temporary. Your benefits won’t be permanently diminished, and reaching FRA eliminates all earning penalties entirely. Many people use this phase to bridge the gap between early retirement and full retirement age, knowing their benefit will be adjusted favorably once they cross that threshold.