Social Security earnings limit question - can we earn $24,500 in just 6 months while taking early retirement?
My husband (63) and I (62) both started collecting our SS retirement benefits early last year. We understand there's an annual earnings limit (around $24,500 for 2025 I think?), but we're wondering about HOW we can earn that money. Does Social Security care if we earn it evenly throughout the year ($2,041/month) or could we work seasonal jobs that pay well for half the year and then not work at all the rest of the year? For example, could we each make $20,000 in 6 months working at our friend's beach resort during tourist season, then take the other 6 months off completely? Or would SSA penalize us for exceeding the monthly limit during those working months? We just want to maximize our work options without losing benefits!
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Carter Holmes
The annual earnings test for Social Security is based on the YEARLY total, not monthly amounts. So yes, you could earn your entire $24,500 in one month if you wanted to, and nothing the rest of the year. SSA only cares about the annual total when you're between 62 and your Full Retirement Age. Just make sure you report your estimated earnings to SSA at the beginning of the year so they can withhold the appropriate amount of benefits if needed, rather than creating an overpayment situation.
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Mia Alvarez
•That's such a relief! Thank you for clarifying. I was worried we'd be stuck trying to carefully manage monthly amounts. This opens up so many more opportunities for us with seasonal work.
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Sophia Long
just make sure ur counting BOTH ur earnings since ur both collecting early. each of u gets the same limit not double fyi
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Mia Alvarez
•Wait, really? I thought we each get our own earnings limit since we're both receiving our own benefits? This changes everything if we have to share one limit between us.
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Carter Holmes
•The previous comment isn't accurate. You each have your own separate earnings limit. If you're both receiving benefits and both working, you each can earn up to the annual limit ($24,500 in 2025) without affecting your own benefit. Your spouse's earnings only affect their benefit, not yours.
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Angelica Smith
My sister and her husband did exactly what you're describing! They run a vacation rental business May-October and make about 90% of their income those months, then they travel in their RV the rest of the year. Social Security doesn't care WHEN you earn the money, just how much you earn total for the year. It works perfectly for them!
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Mia Alvarez
•That sounds like our dream setup! It's encouraging to hear others are making it work. Did they have any issues with Social Security when they initially set it up?
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Logan Greenburg
Just to add some important details: The annual earnings limit for 2025 is $24,480 if you're under Full Retirement Age (FRA) for the entire year. For every $2 you earn above that limit, Social Security withholds $1 from your benefits. However, there's a special rule for the first year you retire. During that first year, Social Security will apply a monthly earnings test if it's more favorable to you. Under that test, you can receive full benefits for any month you earn less than $2,040 (2025 figure) AND don't perform substantial services in self-employment. After your first year of retirement, only the annual limit matters, not how you distribute your work throughout the year. So your plan to work seasonally would be perfectly fine. Just remember to report your expected earnings to SSA at the beginning of each year.
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Mia Alvarez
•Thank you for those specific figures! We're past our first year of retirement, so it sounds like we're good to go with our seasonal work plan. I'll make sure we report our expected earnings accurately.
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Charlotte Jones
YOU PEOPLE ARE ALL MISSING THE BIGGEST PROBLEM HERE!!! The SSA doesn't just magically know how much you're earning - they find out when tax returns get filed, which is AFTER the fact!!! Then they create these MASSIVE overpayments that you suddenly owe back!!!! Happened to me and I'm STILL paying it back 3 years later. They took 30% of my benefit for a year and now still take 10%!!! It's HIGHWAY ROBBERY!!!!
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Mia Alvarez
•Oh no, that sounds awful! So even if we're careful about staying under the limit, we could still end up with problems? How are we supposed to avoid that?
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Logan Greenburg
•This is why it's crucial to report your estimated earnings to Social Security at the beginning of each year. They can adjust your benefits proactively rather than creating an overpayment situation that needs to be repaid later. You can report changes in your earnings estimate throughout the year too if things change.
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Lucas Bey
I had the EXACT same question last year when my husband and I started our early retirement. Was on hold with SSA for literally 3.5 hours trying to get an answer! I finally used this service called Claimyr (claimyr.com) that got me through to an agent in about 15 minutes. The agent confirmed that only the annual total matters, not when you earn it. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - saved me a full day of waiting on hold!
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Sophia Long
•really? never heard of it. does it actually work?
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Lucas Bey
•Absolutely! I was skeptical too but it connected me right away. The SSA agent I spoke with was super helpful and took the time to explain the earnings test in detail. Definitely worth it instead of wasting hours on hold.
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Harper Thompson
I'm confused about something... doesn't the earnings limit go up the year you reach full retirement age? And then disappear completely after that? My husband turns 67 next year (his FRA) and I thought the limit was much higher for that year. Can someone clarify?
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Carter Holmes
•You're absolutely right. In the year someone reaches their Full Retirement Age (FRA), the earnings limit is much higher ($65,880 in 2025), and only earnings before the month they reach FRA count. And the withholding rate is better too - only $1 withheld for every $3 over the limit. Then once they're at FRA, the earnings limit disappears completely and they can earn any amount without reduction.
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Angelica Smith
One thing nobody mentioned - are you sure you're counting the right income? When calculating your earnings for Social Security limits, they only count wages and net self-employment income. They DON'T count investment income, government benefits, pensions, annuities, capital gains, or interest. So if some of your income comes from those sources, you might be able to earn more than you think!
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Mia Alvarez
•That's a great point! Some of our income does come from a small rental property we own. I didn't realize that wouldn't count toward the earnings limit. This gives us even more flexibility!
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Sophia Long
just wondering why u guys took benefits early anyway?? wouldn't it be better to wait till 70 and get the max? that's what my brother did
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Mia Alvarez
•We thought about waiting, but honestly we wanted to start enjoying a semi-retirement lifestyle while we're still healthy and active. We figured the reduced benefits now are worth more to us than larger benefits later. Everyone's situation is different!
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Carter Holmes
A final important tip: keep very good records of your earnings throughout the year. I recommend creating a simple spreadsheet to track monthly income, and regularly check it against the annual limit. This makes it much easier when you need to communicate with SSA about your earnings and helps avoid surprises at tax time.
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Mia Alvarez
•That's excellent advice. I'll set up a tracking spreadsheet this weekend so we can monitor our progress toward the limit. Better to stay organized from the start!
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Dominic Green
This is such valuable information! As someone who's been considering early retirement with my spouse, this thread has answered so many questions I didn't even know I had. The seasonal work approach sounds perfect for our situation too - we've been looking at summer work opportunities at national parks. It's reassuring to know that Social Security focuses on the annual total rather than monthly distribution. I'll definitely be bookmarking this discussion and setting up that tracking spreadsheet that Carter mentioned. Thank you all for sharing your experiences and knowledge!
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