Can I earn $23,400 while on Social Security in 2025 if taking benefits at 63?

you need to worry about the annual limit. if your under FRA for the whole year the earnings limit is $21,240 for 2023. it'll be different for 2025 but nobody knows what exactly cuz they haven't announced it yet. they take back $1 for every $2 you go over the limit fyi

The previous commenter isn't completely accurate. There are two rules you need to understand: 1. First year rule: In your first year of receiving benefits before Full Retirement Age (FRA), SSA applies a monthly earnings test. For 2023, that's $1,770 per month. The 2025 amount will be higher, but hasn't been announced yet. 2. Annual rule: After your first year, it switches to an annual limit (currently $21,240 for 2023, and yes, the $23,400 figure is a reasonable estimate for 2025 based on COLA trends). Since you're starting benefits in February 2025, for the rest of that year you'd be subject to the monthly test. You could earn more than $1,770 (or whatever the 2025 equivalent is) in months before you start benefits with no penalty. Then from February-December, you'd need to stay under the monthly limit for each month you want to receive a benefit check. And yes, for any excess earnings, SSA withholds $1 in benefits for every $2 earned above the limit.

When I started taking my SS retirement benefits early last year, I made the BIGGEST mistake by not understanding this rule!! The SSA ended up taking back almost $4000 of my benefits because I earned too much. What's worse is they didn't tell me until TAX TIME the following year and I had already spent the money!!! Make absolutely sure you understand the monthly limit for your first year and the annual limit after that. Call SSA directly to confirm what those amounts will be for 2025 - don't trust what you read online.

Yes I had to pay it all back at once! They gave me the option to have my future benefits reduced until it was paid back, but I had some savings so I just wrote them a check. The worst part was I had NO IDEA I was over the limit - my employer gave me a surprise bonus in December that pushed me over. Now I'm super careful about tracking my income.

I'd like to clarify a couple important points about the earnings test: 1. The earnings limit ONLY applies to wages or self-employment income. It does NOT include pensions, investments, interest, annuities, capital gains or other government benefits. 2. For 2025, the monthly limit will likely be around $1,950-$2,000 (based on projected COLA increases from the 2023 amount of $1,770). 3. In the calendar year you reach Full Retirement Age, the limit increases substantially - to $56,520 for 2023, and likely around $62,000 for 2025. 4. Once you reach your FRA, there is NO earnings limit - you can earn any amount without affecting your benefits. Since you're 63, you're about 3-4 years away from FRA (depending on your birth year). During that time, you'll need to carefully manage your earnings if you want to avoid benefit reductions.

Everyone here is making good points about the limit but nobody's mentioned the BIG PICTURE - taking SS at 63 means u get a permanently reduced benefit!!! Like 25-30% LESS FOREVER compared to waiting til your FRA! And if u wait til 70 u get even more. If ur still able to work why not just work more and wait to claim SS later??????

I've been trying to call the Social Security office for weeks to ask almost this exact same question! They never answer and the wait times are ridiculous. Has anyone had any luck actually getting through to a real person? I need to figure out if I should adjust my work hours for next year and time is running out.

One more important thing to consider: Even though your benefits are reduced if you exceed the earnings limit, you actually get credit for those withheld months later. Once you reach Full Retirement Age, SSA will recalculate your benefit and increase it to account for the months when benefits were withheld. Many people don't realize this - it's not a permanent loss, but more like a temporary reduction.

jus wanna say all these rules r why i waited till my FRA to start collecting. didnt wanna deal with all this complicated stuff. ss system is nuts

Just wanted to add another perspective here - I'm a retired benefits counselor and worked with SSA for 15 years. A few additional tips that might help: 1. Keep detailed records of your monthly earnings throughout 2025. SSA sometimes makes mistakes in their calculations, and having your own records helps if you need to dispute anything. 2. Consider the timing of when you receive paychecks vs when you earn the money. SSA counts wages in the month you receive them, not when you earn them. So if you get paid on the 1st for the previous month's work, that income counts toward the month you receive it. 3. If you're close to the limit in any month, you can ask your employer to defer some income to the next month (like delaying a bonus) to stay under the threshold. 4. The "first year rule" that Amina mentioned is really important - make sure you understand exactly how it applies to your situation starting in February. Since the 2025 limits haven't been announced yet, I'd suggest calling SSA in January to get the official numbers before making any final decisions about your work schedule. Good luck with your retirement planning!

Another thing to keep in mind is that if you're planning to work part-time, you might want to consider seasonal work patterns to maximize your benefits. For example, if you know the monthly limit for 2025 will be around $1,950-$2,000 as Javier estimated, you could potentially work more hours in January (before you start collecting) and then reduce your hours for the rest of the year. Some people also find it helpful to work more in December since that gives them a full year to plan their earnings for the following year. Just make sure whatever arrangement you make with your boss is documented in writing so there's no confusion about your schedule or pay timing later on.