Social Security earnings limit when collecting benefits at 65 - can I still work part-time?
I started collecting my Social Security retirement benefits when I turned 65 last fall. I'm thinking about picking up a part-time job at my grandson's garden center to keep busy (and help with rising expenses!). Someone at church mentioned there's a limit to how much I can earn before they reduce my benefits. Is that true? How much can I earn without getting penalized? Would I have to pay it back or do they just reduce future payments? Any info appreciated.
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Yara Sayegh
Yes, there is an earnings limit if you're collecting Social Security before your Full Retirement Age (FRA). For 2025, if you're under FRA the whole year, the limit is about $22,750. Social Security will deduct $1 from your benefits for each $2 you earn above that limit. The year you reach FRA, the limit is higher (about $60,480 for 2025), and they only deduct $1 for every $3 you earn above that limit. Once you reach your FRA, there's NO earnings limit - you can earn as much as you want without any reduction in benefits.
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Connor Murphy
•Thanks for that info! So if I'm born in 1960, my FRA is 67, right? That means I have 2 more years before I can earn without limits. If I make $25,000 this year (which is $2,250 over the limit), they'll reduce my benefits by $1,125 for the year?
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NebulaNova
they dont tell you this much but the SS agents can sometime waive the earnings limit if you can prove hardship!! i had a freind who got exception becuz medical bills. call and ask them maybe??
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Keisha Williams
•I'm sorry, but this is incorrect information. The Social Security Administration does not provide waivers to the earnings limit based on hardship. The earnings limit is set by law and applies to everyone collecting benefits before their Full Retirement Age who has earnings above the threshold. There are no hardship exceptions for this particular rule.
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Paolo Conti
I've been dealing with this exact situation for the past 2 years. The important thing to know is that they don't just suddenly cut off your benefits if you go over the limit. What happens is they'll review your earnings (usually through tax returns) and then calculate any adjustment AFTER the year ends. I went about $5,000 over the limit last year and they reduced my monthly check for a few months until it balanced out. Also - another thing to consider - if your part-time job doesn't have benefits, the extra income might be worth a slight reduction in SS.
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Connor Murphy
•That's really helpful to hear your experience! I'd rather have a slight reduction than miss out on the extra income completely. Do they notify you before they start reducing the payments?
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Amina Diallo
NOBODY HAS MENTIONED THE MOST IMPORTANT PART!!! The money isn't truly "lost" when you exceed the earnings limit. SSA recalculates your benefit when you reach full retirement age to credit back the months they withheld benefits. So you'll get a higher monthly amount after you reach FRA to make up for what was withheld earlier! The system is DESIGNED to eventually balance out.
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Yara Sayegh
•This is an excellent point! The benefits withheld due to excess earnings are not permanently lost. When you reach your Full Retirement Age, SSA recalculates your benefit amount to give credit for the months when benefits were reduced or withheld. It's essentially a deferment rather than a penalty in the long run.
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Oliver Schulz
When I started working part-time after taking my SS, I completely messed up the reporting. Called SSA like 8 times and kept getting disconnected or waiting for hours. I finally used this service called Claimyr (claimyr.com) that got me through to an agent in like 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. The agent explained exactly how to estimate my annual earnings and report them correctly. Totally worth it instead of stressing about whether I was doing things right.
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Connor Murphy
•Thanks for the tip! I've tried calling them twice already with no luck. I'll check out that service if I need to speak with someone directly.
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Natasha Kuznetsova
My sister works at Walmart while collecting SS and she just keeps her hours low enough to stay under the earnings limit. She said it's not worth the hassle if you go over. I think she works like 15 hrs a week max?
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Paolo Conti
•It's really a personal decision. Financially, it often makes sense to earn as much as you want and just accept the reduction. Remember, $1 reduction for every $2 earned means you're still netting an additional $1 for each $2 you make above the limit. Plus, as someone mentioned, those reductions get factored back in when you reach Full Retirement Age.
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NebulaNova
dose anyone know if the SSA counts investment income for the earnings limit?? i have some stocks that pay dividends
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Keisha Williams
•Good question. No, investment income like dividends, interest, capital gains, pension payments, annuities, and government benefits do NOT count toward the earnings limit. Only wages from a job or net earnings from self-employment count. So your stock dividends won't affect your benefits at all.
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Amina Diallo
Another thing - make SURE you tell your employer that you're collecting Social Security! I didn't, and they withheld Social Security taxes from my paychecks even though I was already collecting benefits. You still pay Medicare taxes but the SS tax situation is different when you're collecting benefits.
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Yara Sayegh
•I need to clarify this point. You still pay Social Security taxes on your earnings even if you're collecting benefits. These taxes are mandatory regardless of your benefit status. What happens is that these additional earnings might increase your benefit amount slightly through the annual recalculation, especially if these new earnings are higher than some used in your original calculation.
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Connor Murphy
Thanks everyone for all the helpful information! From what I understand: 1) Yes, there's a $22,750 limit for 2025 since I'm under my FRA, 2) If I earn over that, they'll reduce benefits $1 for every $2 over, 3) They'll adjust this after the year ends, not immediately, 4) The withholdings aren't permanently lost - they'll recalculate when I reach FRA, and 5) Investment income doesn't count toward the limit. I think I'll go ahead with the part-time job and not worry too much about the limit. The extra income will help, even with a slight benefit reduction.
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Keisha Williams
•That's a perfect summary of the situation. One additional tip: You can report your estimated earnings to Social Security in advance, which allows them to withhold the appropriate amount throughout the year rather than creating an overpayment that needs to be repaid later. You can do this through your my Social Security account online or by contacting them directly.
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Dmitry Sokolov
•@Connor Murphy That sounds like a great plan! Working at your grandson s'garden center will be a nice way to stay active too. Just make sure to keep good records of your earnings throughout the year so you can track where you stand relative to the limit. And don t'forget - even if you do go over, you re'still coming out ahead financially since you keep $1 for every $2 earned above the threshold. Good luck with the new job!
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