As long as you are at your full retirement age, which is determined by your date of birth, working will not impact your Social Security benefits, but if you are collecting Social Security benefits early, your work income can reduce your benefits. Here is how Social Security determines whether your benefits will be reduced.
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, Social Security will reduce your benefit. Starting with the month you reach full retirement age, the agency will not reduce your benefits no matter how much you earn.
- Social Security uses the following earnings limits to reduce your benefits: If you are under full retirement age for the entire year, the agency deducts $1 from your benefit payments for every $2 you earn above the annual limit. For 2018 that limit is $17,040.
- In the year you reach full retirement age, Social Security deducts $1 in benefits for every $3 you earn above a different limit, but the agency only counts earnings before the month you reach your full retirement age.
If you will reach full retirement age in 2018, the limit on your earnings for the months before full retirement age is $45,360. Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings. Use Social Security’s Retirement Age Calculator to find your full retirement age based on your date of birth. Use Social Security’s Retirement Earnings Test Calculator to find out how much your benefits will be reduced.
What counts as earnings?
When Social Security figures out how much to deduct from your benefits, they count only the wages you make from your job or your net earnings if you’re self-employed. The agency includes bonuses, commissions, and vacation pay. Social Security does not count pensions, annuities, investment income, interest, veterans, or other government or military retirement benefits.
Your benefits may increase when you work:
As long as you continue to work, even if you are receiving benefits, you will continue to pay Social Security taxes on your earnings. However, the agency will check your record every year to see whether the additional earnings you had will increase your monthly benefit. If there is an increase, Social Security will send you a letter telling you of your new benefit amount. When you’re ready to apply for retirement benefits, use the agency’s online retirement application, the quickest, easiest, and most convenient way to apply. If you need to report a change in your earnings after you begin receiving benefits:
If you receive benefits and are under full retirement age and you think your earnings will be different than what you originally told Social Security, let the agency know right away. You cannot report a change of earnings online. Please call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) between 7 a.m. to 7 p.m., Monday through Friday, or contact your local Social Security office.
