Social Security earnings limit for non-FRA increased for 2025? Need clarification on maximum income
I'm 63 and started taking SS benefits in January. I'm still working part-time but trying to keep my income under the annual earnings limit. Someone at my workplace said the earnings limit for people under Full Retirement Age is going up in 2025, but I can't find any official information about this. The SSA website still shows the 2024 limits ($22,320 I think?). Has anyone heard anything about an increase for 2025? I'm trying to plan my work schedule for next year and don't want any surprise benefit reductions or overpayments. Thanks!
14 comments
Join the conversation
Nalani Liu
Yes, SSA typically announces the COLA and related increases (including the earnings test exempt amounts) in October for the following year. For 2024, the earnings limit for those under FRA is $22,320, and they withhold $1 in benefits for every $2 earned above that limit. The 2025 amount hasn't been officially announced yet, but it will almost certainly increase since it's adjusted annually based on changes in average wages nationwide.
0 coins
Thais Soares
•Thanks for confirming! So we probably won't know the exact 2025 amount until October 2024? That makes planning difficult. Do you know approximately how much it usually increases each year?
0 coins
Axel Bourke
they change it every year with the COLA i think. my sister got caught by this last year and had to pay back like $4000!!! be REALLY careful with how much u make!!
0 coins
Thais Soares
•Oh no, that's exactly what I'm worried about! Did your sister get any warning before they reduced her benefits or did they just send her a bill?
0 coins
Aidan Percy
The earnings limit for beneficiaries who are under Full Retirement Age (FRA) typically increases annually. For 2024, it's $22,320, as you noted. The 2025 amount will likely be announced in October 2024 along with the COLA adjustment. Historically, these increases have ranged from about 2-4% annually in recent years, so you might estimate roughly $22,990-$23,210 for planning purposes, but this is just an educated guess. Remember, this limit applies to earned income only (wages or self-employment). Investment income, pension payments, other government benefits, etc. don't count toward this limit. Also worth noting: In the year you reach FRA, the limit is much higher ($59,520 in 2024) and the penalty is less severe ($1 withheld for every $3 over the limit). Once you reach FRA, there's no limit at all.
0 coins
Thais Soares
•This is really helpful information, thank you! So my estimate for 2025 should be around $23,000 to be safe. And it's good to be reminded that only earned income counts - I do have a small pension that I was worried might push me over.
0 coins
Fernanda Marquez
When I started SS early I had no idea about the earnings limit and had to pay back a bunch. Such a headache! Just make sure you report your expected earnings to them ahead of time and they can adjust your monthly payment instead of hitting you with a big bill later.
0 coins
Norman Fraser
•This is exactly right. You can use the SSA's Earnings Test Calculator on their website to estimate how your earnings might affect your benefits. Or contact them directly to report your expected earnings so they can adjust your payments proactively instead of creating an overpayment situation. I finally managed to get through to an agent after trying for weeks (constant busy signals and disconnects). I ended up using a service called Claimyr (claimyr.com) that got me connected to an agent in about 15 minutes. They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. Really saved me from the endless hold time frustration.
0 coins
Axel Bourke
i thought SSI and SSDI dont have earning limits? only retirement?
0 coins
Aidan Percy
•That's partially correct. SSI (Supplemental Security Income) has very strict income limits because it's a needs-based program. SSDI (Social Security Disability Insurance) has no earnings limit per se, but earning above Substantial Gainful Activity (SGA) levels ($1,550/month in 2024 for non-blind individuals) can jeopardize your disability status. The earnings test we're discussing here only applies to retirement benefits taken before reaching Full Retirement Age. Once you reach FRA, you can earn unlimited amounts without affecting your retirement benefits.
0 coins
Kendrick Webb
THE GOVERNMENT KEEPS CHANGING THE RULES TO KEEP OUR MONEY!!! I worked 47 years and paid into the system and now they penalize me for still working?? This earnings limit is THEFT of our benefits. I bet they'll barely increase it for 2025 while inflation keeps going up!!!
0 coins
Nalani Liu
•The earnings limit isn't actually a penalty - it's more of a deferral. Any benefits withheld due to excess earnings are added back to your monthly benefit amount once you reach Full Retirement Age, resulting in a permanent increase. So you don't lose that money permanently. The earnings limit has been part of Social Security since the beginning. It's designed based on the program's original purpose as partial replacement of lost earnings due to retirement. If you're still earning significant income, you're not fully 'retired' by the program's definition.
0 coins
Hattie Carson
One thing I haven't seen mentioned yet - if you're in your first year of retirement, they apply a monthly earnings test instead of annual, which can be really helpful. Basically if you retired mid-year after making a lot pre-retirement, they won't count those pre-retirement earnings against you. And yes, definitely expect an increase for 2025. Based on economic indicators so far, I'd guess around a 2.5-3% increase to the earnings limit. That would put it around $22,900 give or take.
0 coins
Thais Soares
•That monthly earnings test would have been really helpful to know last year! So it sounds like the consensus is roughly $23,000 for the 2025 limit. I'll plan my work hours accordingly. Thank you all for the helpful information!
0 coins