Social Security earnings limit for first year of retirement - can I work part-time starting in February?
I just started receiving my Social Security retirement benefits at 64. Applied in early November and finally got my first check in January (which was for December). Now I'm thinking about picking up some part-time work starting next month, but I'm confused about the earnings limit. I know there's a monthly limit of around $1,950, but is there something special about the first year? Does it matter that I've already received my first payment? Can I just start working in February and earn up to that monthly amount without penalty? Or is there a different rule for the first year of benefits? Any clarification would be greatly appreciated!
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Zane Gray
There's a special first year rule! The monthly limit only applies during your first year of retirement. So you can make up to $1,950/month without losing benefits, even if you go over the annual limit.
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Aileen Rodriguez
•Thanks, that's helpful! So if I start working in February, each month I can earn up to $1,950 and it won't affect my benefits? Do I need to report this to SSA ahead of time?
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Maggie Martinez
The first year rule is super helpful! When I retired, I was confused about this too. Since you're already receiving benefits and considering starting part-time work in February, you'll be subject to the monthly earnings test for the remainder of 2025. Each month you earn less than $1,950, you'll receive your full benefit regardless of your annual earnings. Just make sure you report your earnings estimate to SSA so they don't hit you with an overpayment later. The monthly earnings test is specifically designed for situations like yours - mid-year retirement or starting work after benefits begin.
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Alejandro Castro
•This is NOT completely accurate! The monthly limit ONLY applies to months BEFORE you hit FRA (full retirement age). After you hit FRA there is NO earnings limit at all!!! Also the limit is $2,190 per month for 2025 not $1,950. And the yearly limit is $26,280. Get your facts straight people!!!!
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Maggie Martinez
•You're right about the 2025 amounts, my mistake. The monthly limit is $2,190 and the annual limit is $26,280 for those under FRA for the entire year. And yes, after reaching FRA, there is no earnings limit. Thanks for the correction!
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Monique Byrd
When I started my SS at 63, I kept working part-time at Walmart. First year rule saved me! I could earn up to the monthly amount and still get full benefits for those months. But careful - they count GROSS earnings, not take-home. And if you go over by even $1, you lose the ENTIRE benefit for that month, not just the excess. I learned the hard way when I picked up an extra shift one month and went over by $78, lost my whole $1,830 payment. Still mad about that.
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Jackie Martinez
•This is important info! I almost made this mistake too. One correction though - you don't necessarily lose your ENTIRE benefit if you exceed the limit. If you exceed the monthly limit, you don't receive benefits for that month. If you exceed the annual limit (but not using the monthly rule), SSA withholds $1 in benefits for every $2 you earn above the limit.
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Lia Quinn
I've been trying to reach someone at SSA for THREE WEEKS to ask about this exact thing!!!! Call center keeps disconnecting me or putting me on hold for 2+ hours then nothing happens. Literally impossible to talk to a human. Anyone know how to actually get through to SSA????
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Haley Stokes
•I had the same problem trying to ask about my earnings limit. What worked for me was using Claimyr to get through to SSA. It basically calls SSA for you and when they answer, it calls your phone and connects you. Saved me hours of frustration. I found it at claimyr.com and there's a video that shows how it works: https://youtu.be/Z-BRbJw3puU. Totally worth it when you need to talk to someone at SSA about something important like earnings limits.
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Lia Quinn
•omg thank you! will check this out right now. so tired of being on hold all day
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Aileen Rodriguez
Thank you all for the helpful information! Just to make sure I understand correctly: Since I'm starting part-time work in February, I can earn up to $2,190 gross each month without affecting my benefits (since that's the 2025 limit). Even if I end up earning more than the annual limit of $26,280 for the year, as long as I stay under the monthly limit each month, I'll be fine. And I should contact SSA to let them know about my estimated earnings. Does that sound right?
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Jackie Martinez
•Yes, that's exactly right. This is called the "grace year" rule. For the rest of 2025, you can use the monthly earnings test. As long as you earn $2,190 or less in any month, you'll receive your full benefit for that month regardless of your total earnings for the year. Just remember that this monthly test only applies during your first year of retirement. Starting in 2026, only the annual limit will apply until you reach your full retirement age.
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Zane Gray
my brother in law got in trouble for not reporting his earnings when he went back to work after starting ss. said they made him pay back like $8000 in benefits. scary stuff
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Maggie Martinez
•This is why it's so important to report any work activity to SSA as soon as possible. You can estimate your earnings for the year, and they can adjust your benefits accordingly. Much better than getting hit with a huge overpayment notice later! You can report changes in your work and earnings by calling SSA or by visiting your local office.
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Alejandro Castro
I'm just wonder if it's even worth working part time with these stupid limits. After taxes and the SS reduction if you go over, seems like you barely keep anything. Anyone done the math on this? Seems like the system punishes people who want to work. I'm 63 and thinking about applying but don't want to deal with all this nonsense.
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Monique Byrd
•It can still be worth it depending on your situation. I worked part-time after starting benefits and stayed under the monthly limit. Made about $25,000 for the year while still getting all my SS payments. But you're right that the math changes if you're going to consistently earn over the limit. In that case, some people delay claiming until FRA when there's no earnings limit at all. Really depends on your specific situation.
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Jackie Martinez
Here's a breakdown of the Social Security earnings limit rules for 2025 that apply to your situation: 1. Monthly earnings limit: $2,190 (for those under FRA) 2. Annual earnings limit: $26,280 (for those under FRA all year) 3. First year rule: During your first year receiving benefits, you can use the monthly test Since you're starting work in February after already receiving benefits, the monthly earnings test applies. For each month in 2025, you can earn up to $2,190 without affecting your benefits for that month, regardless of your total earnings for the year. Starting in 2026, only the annual limit will apply. If you exceed the annual limit, SSA withholds $1 in benefits for every $2 you earn above the limit. This continues until you reach your Full Retirement Age (FRA), when the earnings limit no longer applies and you can earn any amount without reduction in benefits.
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Aileen Rodriguez
•This is incredibly helpful, thank you! One more question - do bonuses or holiday pay count toward the monthly limit? I might get those occasionally in my part-time job.
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Jackie Martinez
•Yes, bonuses and holiday pay count toward the limit. SSA counts gross wages when they're earned, not when they're paid. So a December holiday bonus counts for December, even if paid in January. Be careful with these extra payments as they can unexpectedly push you over the monthly limit.
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