Can You Receive Social Security Benefits While Working?

Planning to work during retirement? You’re not alone. Many Americans want to stay active and earn extra income even after claiming Social Security benefits. But how does working impact your retirement benefits from the Social Security Administration?

The good news is you can absolutely receive Social Security benefits while working. In fact, continuing to work might even boost your long-term Social Security retirement benefits.

How Social Security Benefits Work With Employment Income

The Social Security Administration reviews your earnings each year. If you’re working and generating high income, they might recalculate your benefit amount. This means your monthly Social Security check could potentially increase, with adjustments retroactive to January of that earning year.

However, there’s a catch. If you earn too much before reaching full retirement age, some of your Social Security benefits might be temporarily reduced due to eligibility rules.

Social Security Earnings Limits: What You Need to Know

Your full retirement age (FRA) depends on your birth year. Here’s a quick breakdown:

• Born 1943-1954: Age 66
• Born 1955-1959: Gradually increasing from 66 to 66 and 10 months
• Born 1960 or later: Age 67

If you’re younger than your full retirement age and earn above the annual limit, your Social Security benefit could be reduced. For 2025, the earnings limit is $23,400.

How Social Security Benefit Reductions Work

Let’s break down how earnings impact your Social Security benefits:

• Earnings include wages, commissions, bonuses, and vacation pay
• Earnings do NOT include investment income, pensions, or veterans benefits
• If you’re under full retirement age, $1 is deducted for every $2 earned over the limit

Example: Earn $24,000 in 2025, and you’re $600 over the limit. The Social Security Administration would reduce your annual benefits by $300.

Getting Credit for Withheld Social Security Benefits

Don’t worry—you’re not losing those benefits forever. The Social Security Administration will:

• Repay excess withholdings the following year
• Recalculate your benefit at full retirement age to credit months when benefits were reduced

Working and Social Security spousal benefits

Good news for couples: Working doesn’t automatically disqualify you or your spouse from receiving Social Security benefits. However, earnings can impact benefit amounts before reaching full retirement age.

Maximizing Your Social Security Retirement Income

Want to optimize your Social Security benefits? Consider:

• Delaying filing for benefits until full retirement age
• Continuing to work to potentially increase your benefit amount
• Understanding how your specific earnings might impact your monthly check

Remember, every situation is unique. Your personal earnings history, disability status, and retirement timing will determine your specific Social Security benefits.

Final Thoughts on Social Security and Working

Working during retirement isn’t just possible—it can be financially strategic. By understanding Social Security’s earnings rules and eligibility requirements, you can make informed decisions that maximize your retirement income.

To better plan your retirement, it’s also important to know how to view your expected Social Security retirement benefits.