Confused about SS earnings limit - does my $1,400 benefit count toward $1,950 monthly limit?

The earnings limit is completely separate from your benefit amount. You can earn up to $1,950 per month from working without any reduction to your $1,400 SS benefit. The two amounts aren't connected that way. Just to be clear, the earnings test only counts income from working. It doesn't include pensions, investments, interest, or your Social Security benefits themselves. If you do earn more than $1,950 in any month during your first year of retirement, SSA will withhold $1 in benefits for every $2 you earn above the limit. The good news is that once you reach your Full Retirement Age (FRA), the earnings test goes away completely and you can earn as much as you want with no benefit reduction.

I went through this last year and it was so confusing!! The way they explain it in those booklets is the WORST. But yeah, the $1950 is just what you can earn from WORKING. Your actual SS payment isn't counted in that number at all. Just be super careful about going over that monthly limit though!! If you go even $10 over in a month they can take away your ENTIRE benefit for that month during your first year. I learned this the hard way when I picked up an extra shift at my job and lost a whole check!!! After the first year it switches to annual instead of monthly which is a little more forgiving.

the limit is only for work income, not your SS payment. they are totally seperate things. you can make $1950 from work AND get your $1400 SS check.

To add some clarification: the monthly earnings test applies only during the first calendar year you claim retirement benefits. In subsequent years, SSA applies an annual earnings test instead (currently $21,240 for 2025 if you're under FRA). This can be very advantageous if your earnings fluctuate throughout the year. For example, if you earn $3,000 in one month but $0 in another month, the monthly test would cause you to lose benefits for the $3,000 month, but the annual test would average it out. Also, be aware that SSA counts gross wages in the month they're earned, not when they're paid. So if you work in December but get paid in January, those earnings count for December's limit. I'd recommend keeping a detailed earnings record and staying well under the limit if possible to avoid surprises.

I remember being confused about this too! Everyone's right - your SS benefit amount doesn't count toward the earnings limit. The $1,950 is JUST what you can earn from working. By the way, when are you turning FRA? Because once you hit that magic number, you can earn as much as you want with no penalties at all. My husband kept working past his FRA and collects his full benefits with no reduction.

Dealing with Social Security's phone lines is TERRIBLE if you need to ask someone about this. I spent 3 hours on hold last month trying to get clarification on the earnings test, only to be disconnected. TWICE. I finally discovered a service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent explained that my SS payment doesn't count toward the earnings limit at all - just like others here are saying. The earnings limit only applies to money from work. So your $1,400 benefit is completely separate from the $1,950 monthly earnings allowance.

EVERYONE HERE IS WRONG!!!! The earnings limit DOES include your benefit amount! I know because my brother-in-law had his benefits reduced when he earned too much. The SSA counts ALL your income including your benefits!!! You need to be careful or they'll make you pay it ALL back like they did to him. He had to repay thousands!!!

Thanks everyone for the helpful responses! I think I understand now - the $1,950 monthly limit only applies to what I earn from working, not my SS benefit amount. My benefit check is completely separate from that limit. So I can receive my $1,400 SS benefit AND earn up to $1,950 from my part-time job without any reduction. That's a big relief and makes planning my retirement budget much easier. I'm definitely going to be careful not to exceed that monthly limit during my first year of retirement. After reading your experiences, I'll be tracking my earnings closely to avoid any surprises!

You've got it exactly right! It's great to see you understand the distinction now. Just wanted to add a quick tip from my experience - I keep a simple spreadsheet tracking my monthly earnings to make sure I stay under that $1,950 limit. It's saved me from accidentally going over several times when I was tempted to pick up extra hours. Also, don't forget that if you do accidentally go a bit over one month, those "lost" benefits aren't gone forever. Once you reach your Full Retirement Age, SSA will recalculate and give you credit for any benefits that were withheld due to the earnings test. So while you want to avoid going over the limit, it's not a complete disaster if it happens occasionally. Good luck with your part-time work in retirement!