Social Security earnings limit when retiring at 62 - How much can I work with $1,500 monthly benefit?
I'm planning to claim my Social Security retirement at 62 next month. My estimated benefit will be about $1,500/month, but I still want to work part-time at my brother's landscaping business to stay active. I'm confused about the earnings limit - how much can I make each month without losing benefits? My neighbor said something about $1,800/month but then someone else mentioned a yearly amount. Does it count if I'm paid in cash? Will they take my whole check away if I go over? Really need to understand this before I submit my application!
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Yuki Tanaka
For 2025, the earnings limit when you're under Full Retirement Age (FRA) is $22,320 per year (or $1,860 per month). If you go over that, SSA withholds $1 for every $2 you earn above the limit. They don't take your whole check away, just reduce it proportionally. And yes, cash counts - all income should be reported. They typically look at annual earnings, not monthly, but the monthly limit can apply for the first year you retire.
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Ethan Wilson
•Thanks for explaining! So if I earn $25,000 for the year, that's $2,680 over the limit, so they'd withhold $1,340 from my benefits for the year? Do they take it all at once or spread it out?
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Carmen Diaz
The earnings limit is applied annually, but SSA will usually adjust your monthly payments throughout the year based on what you tell them you expect to earn. It's super important to report your estimated earnings to them when you apply! If you don't and they find out later (which they will through tax matching), you'll face an overpayment notice and have to pay back benefits. The monthly limit only applies in your first year of retirement.
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Andre Laurent
•This happened to my dad!!! He kept working after taking SS at 62 and didn't tell them because he thought since it was part-time it wouldn't matter. Got hit with a $7K overpayment notice two years later! Took him forever to pay it back. Report EVERYTHING to SSA, they WILL find out.
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AstroAce
the limits dont matter after u hit full retirement age which i think is 67 now. my sister jst works whatevre she wants now that shes 68 and keeps all her SS
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Yuki Tanaka
•That's correct. Once you reach your Full Retirement Age (currently between 66-67 depending on birth year), the earnings limit goes away completely. You can earn any amount without reduction in benefits. But OP is talking about claiming at 62, so they'll have the earnings limit for several years.
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Zoe Kyriakidou
SSA is SO ANNOYING about this whole process!!! I made just $348 over the limit last year and they took away almost $200 in benefits. And good luck getting answers when you call - I spent THREE DAYS trying to get through to someone to explain the adjustment. The phone system is a complete nightmare - I kept getting disconnected after waiting for hours!
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Jamal Brown
•When I needed to get through to SSA about my earnings limit questions, I used a service called Claimyr (claimyr.com). They got me connected to an actual SSA agent in about 20 minutes instead of waiting for hours or getting disconnected. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - saved me so much frustration when I was trying to figure out exactly how much I could work while getting my early retirement.
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Mei Zhang
My wife claims benefits at 62 last yr. The way they count earnings is weird - it's not when you get paid but when you EARNED the money. So December paychecks count for that year even if paid in January. Also self-employment income counts differently than wages. Whole system is complicated!
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Carmen Diaz
•That's right about wages counting when earned, not when paid. For the OP considering working for a family business: if you're paid as an employee (W-2), it's when you earned it. If you're considered self-employed (1099), it's when you receive the payment. Important distinction for year-end payments.
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Ethan Wilson
Thanks everyone for the information! I'm thinking maybe I should wait until my FRA now. But one more question - if I do retire at 62 and they withhold some benefits due to earnings, do I get those withheld benefits back later?
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Yuki Tanaka
•Yes! This is an important point many people miss. SSA recalculates your benefit when you reach FRA and gives you credit for all the months they withheld benefits. Your monthly benefit amount will increase at FRA to account for those previous reductions. So you do eventually get the money back, just later and spread out over your lifetime.
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AstroAce
my cousin did somthing smart, he worked jan-oct full time then retired in nov and got 2 SS checks that yr becuz he didnt go over monthly limit for those 2 months even tho the yearly total was over
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Carmen Diaz
•Your cousin used the first-year retirement rule correctly! In the calendar year you first retire, SSA will use a monthly test rather than annual if it benefits you. You get a full benefit for any month you earn under the monthly limit ($1,860 in 2025) AND don't perform substantial services in self-employment. This special rule only applies for that first calendar year of retirement.
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