Social Security benefits at full retirement age while still working - will my income reduce my SS payments?
I'm turning 67 next month (my full retirement age) but I'm still enjoying my part-time consulting work and don't plan on stopping anytime soon. I've been getting conflicting advice about whether working will reduce my Social Security benefits. My sister-in-law insists that I'll lose benefits if I keep working, but my financial advisor says that once I reach FRA, I can earn as much as I want without penalty. Can someone clarify this? Will the SSA reduce my monthly payments because I'm still earning income? I'm expecting about $2,800/month in SS benefits and will probably make around $38,000 this year from my consulting. Any insight would be appreciated!
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Oliver Zimmermann
Good news! Your financial advisor is correct. Once you reach your Full Retirement Age (FRA), the earnings test no longer applies. You can earn any amount without having your Social Security retirement benefits reduced. The earnings limit only affects people who are collecting Social Security before their FRA. If you had started collecting early (before 67), then your benefits would have been reduced by $1 for every $2 earned above the annual limit ($21,240 in 2025). In the year you reach FRA, it would be $1 for every $3 above a higher limit. But since you're waiting until your FRA, you don't have to worry about any of that. The only thing you should be aware of is that depending on your combined income (including your SS benefits), up to 85% of your Social Security might be taxable. But that's a tax issue, not a benefit reduction.
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Amina Toure
•That's such a relief! Thank you for explaining this so clearly. I was really worried I'd be penalized for continuing to work. So just to confirm - the SSA will pay me my full benefit amount regardless of how much I earn from consulting? And I just need to be prepared for possible taxes on my benefits at tax time?
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Natasha Volkova
yep no penalties at FRA but watch out for taxes!! i got hit with a big tax bill last year because i didnt realize my SS would be taxable with my other income. get a good tax person
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Javier Torres
•This is true. Working while receiving Social Security at FRA doesn't reduce benefits, but it can increase your tax liability. If your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $25,000 for single filers or $32,000 for joint filers, up to 85% of your benefits may be taxable. It's important to plan for this by either adjusting tax withholding on your SS benefits (you can submit Form W-4V) or making quarterly estimated tax payments. Many retirees are surprised when tax season comes around.
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Emma Davis
My husband and I BOTH got terrible advice about this!!! We delayed retiring because someone told us that we would lose benefits if we kept working after we filed. We could have been collecting for TWO YEARS while still working our part-time jobs!!! So frustrating!!! Make sure you're getting the correct information from SSA directly, not just what people tell you.
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CosmicCaptain
•That sucks you got bad advice. This is why I always triple check everything about social security. So much misinformation out there! My brother waited too long too because he thought the same thing. But at least now you know!
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Malik Johnson
I'm dealing with the same situation right now. Been trying for 3 weeks to get through to SSA to confirm this exact question. Their phone lines are always busy and my local office is booked for appointments until next month. The website info isn't specific enough for my situation since I have some self-employment income too. I finally used a service called Claimyr (claimyr.com) to get through to a real person at SSA yesterday. They got me connected to an agent in about 20 minutes instead of the hours I was spending on hold. There's a video showing how it works at https://youtu.be/Z-BRbJw3puU if you're curious. The agent confirmed what others here are saying - no benefit reduction at FRA regardless of earnings. Such a relief to hear it directly from SSA!
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Amina Toure
•Thanks for suggesting this service! I've been dreading calling SSA because every time I've tried in the past I end up on hold forever. I'll check out that website. Did they answer all your questions about self-employment income too? I'm in a similar situation with my consulting work.
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Malik Johnson
•Yes, they answered everything! The agent walked me through how self-employment income is treated (same as regular wages once you're at FRA). She also explained that I should still report my earnings changes to SSA even though it won't affect my benefit amount, just to keep my record current. Definitely worth getting the direct answers.
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Isabella Ferreira
When I hit my FRA last yr I was still workin full time and gettin full SS. Made about $72k from my job plus my $2500/mo from SS. No reduction but MAN the taxes were a shock!!! I'm in CA and almost 40% of my SS ended up bein taxed when all was said and done. Still worth it tho.
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CosmicCaptain
Does anyone know if this applies to survivor benefits too? My mom is getting survivor benefits from my dad's record and she's at FRA but worried about working part-time.
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Oliver Zimmermann
•Yes, the same rules apply to survivor benefits. Once your mother has reached her full retirement age, she can earn any amount without it affecting her survivor benefits. The earnings test works the same way for retirement, spousal, and survivor benefits. If she's already at her FRA, she's free to work as much as she wants with no reduction in survivor benefits.
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Amina Toure
Thanks everyone for the helpful responses! This community is amazing. I've scheduled an appointment with my tax preparer to discuss how to handle the potential tax implications, but I'm relieved to know my actual benefit won't be reduced. I'll definitely check out that Claimyr service if I need to confirm anything else with SSA directly. It's been nearly impossible to get through on their regular phone lines.
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Natasha Volkova
just remember that medicare premiums might be higher if ur making more money!! they have that IRMAA thing where if u make over certain amount they charge more for part B
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Javier Torres
•This is a very important point. Income-Related Monthly Adjustment Amount (IRMAA) can significantly increase your Medicare Part B and Part D premiums if your income exceeds certain thresholds. For 2025, if your modified adjusted gross income (MAGI) from 2023 tax return exceeds $97,000 (single) or $194,000 (married filing jointly), your Part B premiums will be higher than the standard amount. With your combined income from work and Social Security, you might want to calculate if you'll be close to these thresholds.
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Emma Davis
I'm so confused about all this FRA stuff!!! Is that the same as the retirement age? I'm 62 and thinking about taking my benefits early but I'm still working part time at Walmart. Will they reduce my benefits? I make about $22,000 a year.
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Oliver Zimmermann
•FRA stands for Full Retirement Age, which is different for everyone based on their birth year. For people born 1960 or later, FRA is 67. For those born earlier, it's between 66 and 67. At 62, you're taking benefits before your FRA, so yes, the earnings limit would apply to you. In 2025, if you earn more than $21,240, your benefits will be reduced by $1 for every $2 you earn above that limit. With your $22,000 income, you'd be $760 over the limit, so your annual benefits would be reduced by $380 (or about $32 per month). Additionally, by claiming early at 62, your benefit amount is permanently reduced by about a 5/9 of one percent for each month before your FRA (up to 36 months) and then 5/12 of one percent beyond that. This can mean up to a 30% permanent reduction compared to waiting until your FRA.
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