Yes, you can work while receiving Social Security, but your benefits may be reduced if you earn above a certain amount — and the rules differ depending on your age.
If you have not yet reached your full retirement age, Social Security will reduce your monthly payment by $1 for every $2 you earn above the annual limit. For 2024, that limit is $23,400. In the year you reach full retirement age, the reduction is $1 for every $3 you earn above $62,400, but only for earnings before the month you turn full retirement age. Once you reach full retirement age, you can earn any amount without any reduction to your benefits.
The reduction is temporary — it only affects the year you earn over the limit. Your benefit amount returns to its normal level the following year, and Social Security recalculates your payment at full retirement age to account for the months your benefit was reduced. This means working and having your benefits temporarily reduced does not permanently lower what you receive later.
Key Takeaways
- If you are under full retirement age and earn more than $23,400 per year, Social Security reduces your benefit by $1 for every $2 over that amount.
- Once you reach full retirement age, you can work and earn any amount without any reduction to your Social Security payment.
- Only earned income counts toward the limit — investment income, pensions, and rental income do not affect your benefits.
- Social Security recalculates your benefit at full retirement age to account for any months your payment was reduced, so the reduction is not permanent.
- You must report your expected annual earnings to Social Security, and you can update your estimate if your income changes.
How the Earnings Limit Works Before Full Retirement Age
The earnings limit applies only to earned income — wages from a job, net profit from self-employment, or bonuses. It does not include Social Security benefits, pensions, investment income, rental income, or interest. If you receive income from any of those sources, it does not reduce your Social Security payment.
Social Security counts your earnings for the calendar year, not the month you start receiving benefits. If you turn 62 in November and start collecting, your earnings for the entire year (January through December) count toward the limit. The reduction applies starting the month after you exceed the limit.
You are responsible for reporting your earnings to Social Security. When you apply for benefits, you will provide an estimate of what you expect to earn that year. If your actual earnings are higher or lower, you must report the change. You can report earnings online through your Social Security account, by phone at 1-800-772-1213, or in person at your local Social Security office.
What Happens in the Year You Reach Full Retirement Age
The earnings limit changes in the year you reach full retirement age. From January through the month before you turn full retirement age, Social Security reduces your benefit by $1 for every $3 you earn above $62,400. Starting the month you reach full retirement age, no reduction applies regardless of how much you earn.
This means if you turn 67 in June, the higher limit ($62,400) applies only to earnings from January through May. Beginning in June, you can earn without limit. Social Security will calculate the reduction based on your actual earnings during those five months.
How Your Benefit Is Recalculated at Full Retirement Age
When you reach full retirement age, Social Security recalculates your monthly benefit to account for any months your payment was reduced or withheld. The months you did not receive a full payment are treated as if you had not claimed benefits yet — your benefit amount increases to reflect a later start date.
This recalculation is automatic; you do not need to do anything. The new amount takes effect the month you reach full retirement age. For example, if you claimed at 62 and had your benefits reduced for three years due to work earnings, your benefit at 65 will be higher than it would have been without the recalculation.
The recalculation does not make up the full amount you lost during the reduction years, but it does provide a permanent increase to your ongoing benefit. The longer you work and have your benefits reduced, the larger the increase at full retirement age.
Self-Employment and Social Security Earnings
If you are self-employed, Social Security counts your net profit — your revenue minus business expenses — as earned income. You must report this on your tax return, and Social Security uses that figure to determine if you exceed the earnings limit.
Self-employment income is counted in the year you earn it, not the year you receive payment. If you invoice a client in December but do not receive payment until January, the income counts in the year you earned it. Keep records of your invoices and receipts to document when income was earned.
If you are unsure whether a particular type of income counts as earnings, contact Social Security before the end of the year. Reporting incorrectly can result in an overpayment that you will have to repay.
Reporting Changes to Your Earnings
You must report changes to your expected earnings within 30 days. If you lose your job, get a raise, or change your work hours, contact Social Security to update your estimate. Failing to report can result in an overpayment — you will receive more in benefits than you should have, and Social Security will ask you to return the money.
You can report earnings changes online through your my Social Security account at ssa.gov, by calling 1-800-772-1213, or by visiting your local Social Security office. Have your Social Security number and information about your new income ready when you contact them.
At the end of the year, you will receive a form asking you to confirm your actual earnings. Compare this to your tax return and respond promptly. If your actual earnings were lower than you reported, Social Security may owe you additional benefits. If they were higher, you may owe money back.
Working After Full Retirement Age
Once you reach full retirement age, the earnings limit no longer applies. You can work full-time, earn any amount, and receive your full Social Security benefit with no reduction. This is true whether you work as an employee or are self-employed.
Continuing to work after full retirement age can increase your future benefits. If you have not yet reached age 70, your benefit amount grows by about 8 percent for each year you delay claiming. If you are already receiving benefits, your benefit does not increase further, but delaying claiming until 70 would have resulted in a higher payment if you had not yet started.
Frequently Asked Questions
Do I have to tell Social Security I am working?
Yes. When you apply for benefits, you provide an estimate of your expected earnings. If your actual earnings change during the year, you must report the change within 30 days. At the end of the year, you will receive a form to confirm your actual earnings. Failing to report can result in an overpayment that you will have to repay.
What counts as earnings for the limit?
Only earned income counts: wages from a job, net profit from self-employment, and bonuses. Investment income, pensions, rental income, interest, and Social Security benefits do not count. If you are unsure about a specific type of income, contact Social Security before the end of the year.
If my benefits are reduced because I work, do I get that money back?
Not directly, but Social Security recalculates your benefit at full retirement age to account for the months your payment was reduced. Your monthly benefit will be higher than it would have been without the recalculation. The increase is permanent, though it does not fully make up the payments you missed.
Can I work part-time and still receive Social Security?
Yes. Part-time earnings count toward the limit the same way full-time earnings do. If your part-time income stays below the annual limit ($23,400 if you are under full retirement age), your benefits will not be reduced. If it exceeds the limit, your benefit is reduced by $1 for every $2 over the limit.
What if I work for a few months and then stop?
Social Security counts your earnings for the full calendar year. If you work for three months and earn $15,000, that counts toward your annual limit. If you earn over the limit, your benefits are reduced for the months you were over, but the reduction stops once the year ends. Report your actual earnings to Social Security at the end of the year.