2025 Social Security earnings limit at age 62 - how much can I make without penalty?

The earnings limit for 2025 if you're under Full Retirement Age (FRA) for the whole year is projected to be around $22,320. They deduct $1 in benefits for every $2 you earn above that limit. Only WAGES and SELF-EMPLOYMENT income count - not rental income, investments, pensions, etc. So your rental income won't count against you. The year you reach FRA has a different, much higher limit ($59,520 for 2025 estimated) with only $1 withheld for every $3 above. Once you hit your FRA month, there's no limit at all. I've been through this whole process - document everything and report correctly to avoid overpayment notices later!

my sister got hit with this last year. she didn't know about the limit and earned like $5k over it. social security took back $2500 in benefits and she was so upset because she already spent the money. be careful!

Just a quick correction to the first response - the earnings limit for those under FRA for all of 2025 is actually projected to be $22,560, not $22,320. The SSA usually announces the official limits in October of the previous year, so we'll know the exact 2025 limits in October 2024. And yes, only earnings from work count - not pensions, investments, interest, rental income, etc. You do need to notify SSA if you expect to exceed the limit, rather than waiting for them to catch it later. Good luck with your retirement planning!

I went thru this last year! When u start getting benefits, they'll send you a form asking for your expected earnings for the year. BE HONEST or you'll regret it later trust me. If you think you might earn more, estimate high. They'll adjust your monthly payments based on what you tell them. Better to get smaller checks than owe them later!!!

IMPORTANT: While others mentioned the annual earnings limit correctly, make sure you understand the special rule for the first year of retirement. In the first year you claim benefits, SSA will pay a full benefit for any month you earn under the MONTHLY limit ($1,880 for 2025 based on projections) AND don't perform substantial services in self-employment. This helps people who retire mid-year and might have already earned over the annual limit before they started collecting benefits. After that first year, only the annual limit applies. Also, don't forget that any benefits withheld because you exceeded the earnings limit aren't truly lost. Once you reach FRA, your monthly benefit amount will be recalculated to give you credit for those months when benefits were withheld. Not many people realize this part!

I've been trying to reach someone at SSA for days about this same question and keep getting disconnected or waiting for hours. So frustrating! Has anyone had any luck getting through to an actual person lately?

Wat I never understsnd is why we even have an earnings limit?? We PAID into the system our whole lives and now they PENALIZE us for working?? Its OUR money!! Anyone know why this stupid rule exists??

Thanks everyone for the information! One more question - does the earnings limit apply to gross wages or after-tax wages? And if I accidentally go over, will they just take my entire check until it's paid back or work out some kind of payment plan?

Just want to add something that might help - if you're planning to work part-time after claiming at 62, consider whether delaying benefits even just a year or two might be worth it. The reduction for claiming at 62 is permanent (around 25% less than your full benefit), but if you can earn decent income from work anyway, waiting until 63 or 64 gives you a higher monthly benefit for life. I know you said you have your reasons for claiming at 62, but just thought I'd mention it since the earnings limit combined with the early retirement reduction can really impact your total income. Also, don't forget that your Social Security benefits might be taxable depending on your total income including that rental income - that's a separate calculation from the earnings limit but worth planning for!

One thing I'd add that hasn't been mentioned yet - if you're planning to work part-time and are concerned about staying under the earnings limit, consider asking your employer about flexible scheduling or if they can structure some compensation as non-wage benefits that don't count toward the limit. For example, employer contributions to health insurance premiums or HSAs don't count as wages for Social Security purposes. Also, if you have any vacation or sick time accrued, the timing of when that gets paid out can matter for which year it counts toward your earnings. I learned this the hard way when a December payout pushed me over the limit! Just another strategy to help maximize your income while staying compliant with the rules.

Great discussion everyone! I'm in a similar situation and wanted to share what I learned from my local SSA office visit last month. They emphasized that it's really important to report your expected earnings BEFORE you start receiving benefits, not after. They have a form called SSA-723 (Statement of Claimant or Other Person) where you estimate your annual earnings. If your situation changes during the year, you can update it online through your my Social Security account or by calling. The key thing they told me is that it's much easier to adjust your benefit payments downward from the start than to deal with overpayments later. Also, if you're self-employed or have irregular income, they recommend being conservative with your estimates since it's harder to predict exactly what you'll earn. One more tip - keep detailed records of all your earnings throughout the year, including pay stubs and 1099s, because if there's ever a discrepancy you'll need documentation to resolve it quickly.

This thread has been incredibly helpful! I'm also approaching 62 and considering early retirement with part-time work. One thing I wanted to add based on my research is about the "grace year" rule that Connor mentioned - it's really important to understand that the monthly earnings test ($1,880/month for 2025) only applies in your very first year of receiving benefits. After that first year, only the annual limit matters, so you could theoretically earn nothing for 10 months and then make $22,560 in the last 2 months without penalty. Also, I've found that the SSA's Annual Earnings Test calculator on their website is pretty helpful for running different scenarios - you can play around with different income levels to see exactly how it would affect your benefits. Just search for "earnings test calculator" on ssa.gov. It really helped me visualize the impact before making my decision!

As someone new to this community and approaching 62 myself, I just wanted to say thank you to everyone who has shared their experiences here! This thread has been incredibly educational. I'm still trying to wrap my head around all the different rules and calculations, but reading about everyone's real-world experiences with the earnings limit has been so much more helpful than the confusing official SSA materials I've been struggling through. It's clear there are a lot of nuances and strategies that you only learn from people who've actually navigated this system. I'm bookmarking this discussion to reference as I start planning my own early retirement timeline. The tips about being conservative with earnings estimates, understanding the grace year monthly limit, and keeping detailed records are exactly the kind of practical advice I needed. Thanks again to this community for being such a valuable resource!

As a newcomer to this community, I just have to say this thread has been absolutely invaluable! I'm 61 and planning to claim benefits next year, and honestly, I was completely overwhelmed trying to understand the earnings limit rules from the SSA website. The way everyone has broken down the different scenarios - the annual vs monthly limits, the grace year rule, what income actually counts, and all the practical tips about reporting earnings upfront - has made this so much clearer. I had no idea about things like the timing of vacation payouts mattering, or that withheld benefits aren't actually "lost" but get credited back at FRA. I'm definitely going to use that earnings test calculator mentioned and be very conservative with my estimates. It's amazing how much real-world wisdom is shared here that you just can't get from official sources. Thank you all for creating such a supportive space for people navigating these complex decisions!