Yes, you can work while receiving Social Security, but your earnings may reduce your benefits
You are allowed to work and collect Social Security at the same time. However, if you are under your full retirement age, Social Security will subtract $1 from your benefit for every $2 you earn above a yearly limit. Once you reach your full retirement age, you can earn as much as you want without losing benefits. The earnings limit and how it affects you depend on your age and when you started collecting.
The key is understanding which earnings rule applies to you. Social Security has different rules depending on whether you have reached your full retirement age, and the dollar limits change each year. Knowing your specific situation helps you plan how much you can work without unexpected benefit reductions.
Key Takeaways
- If you are under full retirement age, Social Security reduces your benefit by $1 for every $2 you earn above the annual limit, which was $23,400 in 2024.
- In the year you reach full retirement age, a different limit applies only to earnings before the month you turn that age.
- Once you reach your full retirement age, you can work and earn any amount without losing any Social Security benefits.
- You must report your earnings to Social Security, and the agency uses your actual earnings to recalculate your benefits each year.
- Self-employment income counts the same way as wages, and you report it on your tax return.
The earnings limit if you are under full retirement age
If you are collecting Social Security and have not yet reached your full retirement age, Social Security limits how much you can earn. In 2024, you can earn up to $23,400 per year without any reduction to your benefits. Any earnings above that amount reduce your benefit by $1 for every $2 you earn over the limit.
For example, if the limit is $23,400 and you earn $25,400, you are $2,000 over the limit. Social Security would reduce your annual benefit by $1,000 (half of $2,000). The reduction is spread across your monthly payments, so you would receive less each month for that year.
This limit applies only to work you do before you reach your full retirement age. Once you turn that age, the rule changes completely. You should contact Social Security to find out your specific full retirement age, as it varies depending on your birth year.
The earnings limit in the year you reach full retirement age
The year you turn your full retirement age, a different earnings limit applies — but only to money you earn before the month you reach that age. In 2024, this limit is $62,160. Social Security reduces your benefit by $1 for every $3 you earn above this higher limit, but only for earnings before your birthday month.
Once the month arrives when you turn your full retirement age, the earnings limit no longer applies. You can work and earn any amount for the rest of that year and beyond without any reduction to your benefits. This is an important transition point, so mark your birthday month on your calendar and contact Social Security to confirm when the rule changes for you.
No earnings limit once you reach full retirement age
The moment you reach your full retirement age, you can work as much as you want and keep all of your Social Security benefits. There is no earnings limit, no reduction, and no reporting requirement for work income once you have reached that age. This applies for the rest of your life.
Many people continue working past full retirement age, either full-time or part-time. Your benefits do not change based on how much you earn. If you continue working and delaying when you start collecting Social Security, your benefit amount actually increases by a percentage each year you wait, up until age 70.
How to report your earnings to Social Security
You are responsible for telling Social Security about your work income. You do not need to report it every month — instead, you report your total earnings for the year. Social Security uses the information you provide to recalculate your benefits and determine whether any reduction applies.
The easiest way to report is through your online Social Security account at ssa.gov. You can also call Social Security at 1-800-772-1213 to report by phone, or visit your local Social Security office in person. When you report, have your earnings information ready, including your gross income (before taxes) from all jobs.
If you are self-employed, you report your net earnings from self-employment on your tax return, and Social Security uses that figure. Keep records of your income and expenses so you can provide accurate numbers when asked.
What counts as earnings and what does not
Social Security counts wages from a job, net income from self-employment, and bonuses as earnings. It does not count pensions, annuities, investment income, interest, rental income, or capital gains. It also does not count money from savings or retirement accounts you withdraw.
Some types of work-related income have special rules. For example, if you work for a business you own, Social Security counts your net profit. If you receive a bonus for work you did in a previous year, it counts as earnings in the year you receive it, not the year you earned it. Ask Social Security if you are unsure whether a specific type of income counts.
How working affects your future benefit amount
Working while you collect Social Security can actually increase your future benefit amount. Social Security calculates your benefit based on your 35 highest-earning years. If you continue working and earn more than you did in earlier years, those new earnings may replace lower-earning years in the calculation, which raises your benefit.
This benefit increase happens automatically — you do not need to do anything. Social Security recalculates your benefit each year based on your current earnings record. The increase is usually small if you are already collecting, but it can add up over time if you continue working in higher-paying jobs.
When to contact Social Security about working
Contact Social Security before you start a new job or increase your work hours, especially if you are under full retirement age. A representative can tell you exactly how much you can earn without losing benefits and answer questions about your specific situation. You can reach Social Security at 1-800-772-1213, through your online account, or by visiting a local office.
You should also contact Social Security if your earnings change significantly during the year — for example, if you lose a job or start working more hours. Reporting changes promptly helps prevent overpayments that you would have to repay later. If Social Security overpays you because your earnings were higher than expected, you will owe that money back.
Frequently Asked Questions
Will working reduce my Social Security benefits if I am already at full retirement age?
No. Once you reach your full retirement age, you can work and earn any amount without any reduction to your Social Security benefits. The earnings limit no longer applies, and you keep 100 percent of your benefits regardless of how much you earn.
Do I have to report my earnings every month?
No. You report your total earnings for the year, not monthly. You can report through your online Social Security account, by phone at 1-800-772-1213, or in person at a local office. Social Security uses your annual earnings to recalculate your benefits.
What happens if I earn more than the limit and do not report it?
Social Security will eventually discover the higher earnings through tax records and will recalculate your benefits. If you were overpaid, you will owe that money back. It is better to report earnings yourself so you know what to expect and can plan accordingly.
If I work and my benefits are reduced, do I get that money back later?
Not directly as a refund. However, Social Security recalculates your benefit amount at your full retirement age to account for months when you did not receive a full payment due to earnings. You may receive a higher monthly benefit going forward, but you do not receive a lump sum for the months you were underpaid.
Does self-employment income count the same as wages?
Yes. Self-employment income counts toward the earnings limit the same way wages do. You report your net earnings from self-employment (income minus business expenses) on your tax return, and Social Security uses that figure to determine if your benefits are reduced.