Yes, you can work and receive Social Security at the same time, but your benefits may be reduced if you earn above a certain amount before your full retirement age
Social Security does not stop you from working. However, if you claim benefits before reaching your full retirement age and earn more than the annual limit, Social Security will reduce your monthly payment. The reduction is temporary — your benefits return to the full amount once you reach full retirement age, and the money withheld is credited back to you later. If you have already reached full retirement age, you can earn any amount without losing benefits.
The key is understanding which earnings limit applies to you and when. The rules differ depending on whether you are under full retirement age for the entire year, reach full retirement age during the year, or have already passed it.
Key Takeaways
- If you are under full retirement age and earn more than $23,400 per year (2024), Social Security reduces your benefit by $1 for every $2 you earn above that amount.
- In the year you reach full retirement age, a higher limit applies only to earnings before the month you turn that age — currently $62,400 for 2024.
- Once you reach full retirement age, you can work and earn any amount without any reduction to your Social Security payment.
- Only wages from employment count toward the earnings limit; investment income, pensions, and rental income do not affect your benefits.
- Social Security automatically recalculates your benefit at full retirement age to account for any reductions, and you receive a higher payment going forward.
Earnings limits if you are under full retirement age
If you are receiving Social Security and have not yet reached your full retirement age, Social Security tracks your annual earnings. For 2024, the limit is $23,400 per year. If you earn more than this amount, your benefit is reduced by $1 for every $2 you earn above the limit.
For example, if you earn $25,400 and the limit is $23,400, you are $2,000 over. Social Security reduces your benefit by $1,000 that year. This reduction is spread across your monthly payments — you do not lose an entire month's check, but rather receive a smaller amount each month.
The earnings limit changes each year. Social Security publishes the new limit in October or November for the following year, so check the Social Security website or call 1-800-772-1213 to confirm the current year's amount before taking a job or increasing your hours.
The year you reach full retirement age
The rules change in the year you turn your full retirement age. A higher earnings limit applies, but only to income earned before the month you reach that age. For 2024, this limit is $62,400.
Once you reach your full retirement age in that calendar year, you can earn any amount for the rest of the year without any reduction. This means if you turn 67 in June, the $62,400 limit applies only to earnings from January through May. Starting in June, you can work and earn without limit.
This transition can work in your favor if you plan it carefully. Some people reduce their hours or take time off in the months before reaching full retirement age, then return to full-time work afterward.
After you reach full retirement age
Once you have reached your full retirement age, the earnings limit disappears entirely. You can work full-time, part-time, or start a business and earn any amount without Social Security reducing your benefit by even one dollar.
Your monthly benefit stays the same regardless of how much you earn. This is true whether you are 67, 75, or 95 — there is no upper age limit on work.
What counts as earnings and what does not
Social Security only counts wages from employment toward the earnings limit. This includes W-2 wages from a job and net self-employment income from a business you own. Bonuses, commissions, and vacation pay all count as earnings in the year you receive them.
These do not count toward the limit: investment income, interest, dividends, capital gains, rental income, pensions, annuities, or royalties. If you live on investment income and do not work, your Social Security is not affected. If you own rental property, the income from that property does not reduce your benefit, even if you earn a large amount.
If you are self-employed, only your net profit counts — the amount after business expenses. If your business loses money, that does not reduce your Social Security.
How the reduction is calculated and what happens later
Social Security does not ask you to repay the money withheld. Instead, the reduction is temporary. When you reach your full retirement age, Social Security recalculates your benefit to account for the months you received a reduced amount. Your monthly payment increases at that point, and the increase is designed to make up for the benefits you did not receive earlier.
This recalculation is automatic — you do not need to contact Social Security or file anything. The new, higher benefit amount takes effect the month after you reach full retirement age.
Over your lifetime, the total amount you receive from Social Security is roughly the same whether you claimed early and had reductions due to work, or waited to claim. The system is designed to be actuarially fair, meaning the total payout averages out across people who live to different ages.
Reporting your earnings to Social Security
You are responsible for telling Social Security about your earnings. You do not need to report them monthly, but you should report your expected annual earnings when you first claim benefits. If your actual earnings differ from what you reported, you must contact Social Security to correct it.
The easiest way to report is to call 1-800-772-1213 or visit your local Social Security office. You can also create an account on ssa.gov and update your information online. Have your Social Security number and information about your job ready when you contact them.
If you do not report earnings and Social Security later discovers you earned more than the limit, they will adjust your benefits retroactively. It is better to report accurately upfront than to face a bill later.
Frequently Asked Questions
If I work and my benefits are reduced, do I get that money back?
Not as a direct refund, but yes — the reduction is credited toward your future benefits. When you reach full retirement age, Social Security recalculates your benefit to account for the months you received less. Your monthly payment increases at that point, and the increase is designed to compensate for the earlier reductions. Over your lifetime, the total amount evens out.
Does part-time work count toward the earnings limit?
Yes. Social Security counts all wages from employment, whether you work part-time or full-time. If you earn $25,000 from a part-time job and the limit is $23,400, the $1,600 overage still triggers a reduction. The number of hours you work does not matter — only the total amount you earn.
What if I am self-employed — how do I report earnings?
Report your net self-employment income, which is your profit after business expenses. You will report this on your tax return, and Social Security uses that information. If you expect your net income to exceed the earnings limit, contact Social Security before the year ends so they can adjust your benefits accordingly.
Can I work overseas and still receive Social Security?
Yes, you can work anywhere and still receive Social Security. The earnings limit applies to all work, whether in the United States or abroad. However, if you are a U.S. citizen living outside the country, different rules may explore to your benefits — contact Social Security directly to confirm your situation.
If I delay claiming Social Security to keep working, do I get a higher benefit later?
Yes. If you do not claim Social Security and continue working, your benefit increases by about 8 percent per year for each year you delay past your full retirement age, up to age 70. This is separate from the earnings limit rules — it is a reward for waiting to claim.