In 2025, it is possible to get Social Security retirement benefits and work simultaneously. Thus, if you are interested in working while on retirement payments, you need to know some important things before you do it. This is particularly important if you are younger than Full Retirement Age.
Bear in mind that Social Security recipients who have not reached Full Retirement Age, there is a limit to the earnings you can get from work. If you exceed this limit, the Administration will reduce your monthly payments.
What if I have reached FRA when I start working while on Social Security?
As a matter of fact, beginning with the month you reach FRA (Full Retirement Age), the Social Security Administration will not reduce your monthly payments. Yes, it is true and it does not matter how much money you receive from the work you do.
For your information, the Agency only counts the wages you make from work if you have an employer. If you are self-employed, the Administration will count your net earnings.
Do not forget that the Social Security Administration will take into account vacation pay, bonuses, and commissions. If you have not reached FRA, check the limits below.
Social Security earnings limit to reduce benefits if you work
American workers who are under Full Retirement Age for the whole year will get a $1 deduction from their monthly payments for every $2 they get over the limit per year.
- the new limit after the 2025 COLA: $23,400 (up from $22,320)
If you are in the year you reach FRA, the SSA will only deduct 1 dollar for every 3 dollars you go over the limit. Of course, the Agency will only count earnings before the month you reach FRA. Keep in mind that the limit will be $62,160 if you reach FRA in 2025. Thus, it will be much higher than for previous ages.
