Does retirement income count toward Social Security earnings limit or just W-2 wages?

The earnings limit only applies to wages or self-employment income. Your pension and 401k withdrawals don't count toward the annual earnings test limit. Only your $15,000 part-time income would count, which is below the 2025 limit for early retirees, so you won't face any benefit reductions from the earnings test. When you reach your Full Retirement Age (FRA), there's no earnings limit at all, so you can earn any amount without reduction. Just remember though - while your pension and 401k withdrawals don't count for the earnings test, they might still make your Social Security benefits taxable depending on your combined income.

ur brother in law is wrong!!! only WORK income counts - not retirement $$$. i got a pension from state govt + SS and they dont care about pension money at all for the limit thing. just what u EARN at a job

To add some additional clarity, the Social Security Administration only looks at "earned income" for the Annual Earnings Test (AET) that applies before Full Retirement Age. Here's what counts and what doesn't: Counts toward earnings limit: - Wages from employment (W-2 income) - Net earnings from self-employment - Bonuses, commissions, vacation pay - Certain deferred compensation Doesn't count toward earnings limit: - Pension payments - Annuities - Investment income - 401(k) or IRA distributions - Capital gains - Interest and dividends - Lottery/gambling winnings So your $15,000 part-time job is the only income that would count, and that's well below the 2025 limit of $22,320. You're in good shape!

When I retired 2 years ago I had similar confusion!!! The SSA website is SO confusing on this point. I ended up calling them directly and waiting HOURS to speak with someone (literally 3+ hours on hold). They confirmed pensions don't count toward earnings test. Only my part-time consulting work counted.

I'm actually dealing with EXACTLY this situation right now. I'm 63, took early SS last year, and I have pension, 401k AND part-time income. What everyone is saying is correct - only your W-2 income counts toward the earnings limit. But here's what nobody mentioned: if you go over the limit, they don't just reduce your benefits a little bit... they withhold ENTIRE MONTHS of benefits. When I accidentally went over by about $3,000 last year, they withheld 2 full months of my SS checks!!! So keep careful track of your part-time income and stay under that limit!

My uncle told me the earnings limit is different if u turn 62 in the middle of the year??? something about them only counting earnings for part of the year in the first year???

One more thing that tripped me up when I was in your situation - the earnings limit goes up significantly in the year you reach your Full Retirement Age (FRA). For 2025, that higher limit is $59,520 for the months before you reach FRA. And once you hit your FRA month, there's no limit at all. Based on your age (turning 62 next month), your FRA is probably 67, so that higher limit won't apply to you for a few years, but still good to know as you plan ahead!

I want to circle back to something important - even though your pension and 401k don't count for the earnings test, they WILL affect how much of your Social Security is taxable. Up to 85% of your benefits can be subject to federal income tax if your "combined income" (AGI + non-taxable interest + half of SS benefits) exceeds certain thresholds. For 2025, those thresholds are: - $25,000-$34,000 for individuals (50% of benefits may be taxable) - Above $34,000 for individuals (85% of benefits may be taxable) - $32,000-$44,000 for joint filers (50% of benefits may be taxable) - Above $44,000 for joint filers (85% of benefits may be taxable) So make sure you're accounting for potential tax implications in your overall retirement income planning.

Just wanted to add one practical tip from my experience - keep detailed records of your part-time earnings throughout the year! I use a simple spreadsheet to track my monthly income from work vs. my pension/401k withdrawals. This makes it much easier when you have to report your earnings to SSA at the end of the year. Also, if you're working for an employer (vs. self-employment), they'll automatically report your W-2 wages to SSA, so there's no hiding it even if you wanted to. The system is pretty much automated these days. But having your own records helps you stay on top of where you stand relative to that $22,320 limit throughout the year. Sounds like you're in great shape with only $15K in work income - that gives you a nice cushion under the limit!