Can I work full-time while collecting Social Security at FRA with no penalty (born in 1960)?

You're in luck! Since you were born in 1960, your Full Retirement Age (FRA) is 67. And yes, once you reach your FRA, the earnings test no longer applies - you can earn as much as you want with no penalty to your Social Security retirement benefits. Prior to FRA, there is an earnings limit ($22,320 in 2025 if you're below FRA for the full year, with $1 in benefits withheld for every $2 over the limit). As for benefit amounts - collecting at your FRA (67) will give you your full benefit amount. If you wait until 70, you'll get an 8% per year increase (24% total) in your benefit amount. So waiting does give you a permanent increase, but it's not technically a "reduction" if you claim at FRA - that's your full benefit.

My bro in law tried collecting early at 62 and BOY was that a mistake with his income! They took back so much $$ it wasnt even worth filing. Better to wait til ur FRA which I think is 67 for you.

I was born in 1959 and went through this exact situation last year. I'll tell you what the SSA rep told me when I finally got through after calling for THREE DAYS STRAIGHT (so frustrating)! Yes, at your Full Retirement Age, which is 67 for you, the earnings test completely disappears. You can make $1 million a year and still get your full SS benefit. No penalties whatsoever. But here's something to consider: even though you can collect at FRA without penalties, your benefit amount increases by 8% for EACH YEAR you delay filing from 67 to 70. That's a guaranteed 24% increase if you wait until 70! If you're still working and don't need the money, you might want to consider waiting. I kept working and started collecting at 67, but sometimes wonder if I should have waited to 70.

Ughhh the earnings test is so confusing. I thought FRA was 65 for everybody? Why do different people have different FRAs? The whole system is needlessly complicated! I attempted to call SSA three times this month to get clarification and either got disconnected or was on hold for 2+ hours. Their customer service is TERRIBLE!!! How is anyone supposed to get answers about their benefits????

To answer the original question more directly, here's what you need to know about working while collecting Social Security: 1) Before FRA: There's an earnings limit ($22,320 in 2025), and SSA withholds $1 for every $2 over that limit. 2) Year you reach FRA: Higher limit applies ($59,520 in 2025 for months before reaching FRA), and SSA withholds $1 for every $3 over that limit. 3) After reaching FRA: NO LIMITS! You can earn any amount without reduction in benefits. Your FRA is 67 (for those born 1960 or later). The confusion might come from the fact that FRA used to be 65, then moved to 66 for people born 1943-1954, and then gradually increased to 67 for those born 1960 or later. As for benefit amounts, collecting at FRA (67) gives you your full benefit. Every year you delay past FRA until 70 adds 8% to your benefit (permanently). Every year you claim earlier than FRA (back to 62) reduces your benefit by about 6.7% per year. Hope this helps!

I was in exactly your situation 3 years ago. The earnings test only applies to EARNED income - so wages and self-employment income. Investment income (dividends, interest, capital gains) and pension payments don't count toward the earnings test limit. Just wanted to clarify that point since others haven't mentioned it specifically.

IMPORTANT: Even after FRA when there's no earnings limit, you should know that receiving Social Security while earning a high salary will likely make up to 85% of your SS benefits subject to federal income tax. So while there's no penalty or reduction in benefits after FRA, the tax implications can be significant if you're still earning $85k plus collecting SS. Not saying you shouldn't do it - just be prepared for the tax impact. I'd suggest talking to a tax professional before you make your final decision.

WAIT! Does anyone know what happens if you're over the limit BEFORE reaching FRA? I heard they take back money but then give it back to you later?? Is that true? So confused about this system!