Social Security penalty-free work age after taking SS at 62 - income limit questions

The magic age you're looking for is your Full Retirement Age (FRA). Once you reach that point, you can earn unlimited income without any reduction to your Social Security benefits. Before FRA, SSA applies an earnings test where they deduct $1 in benefits for every $2 you earn above the annual limit (which is $22,320 for 2025). At $55,000, you would definitely face some benefit reduction until you reach your FRA.

actually its not quite as bad as it sounds bc any months where they withhold benefits before FRA get credited back to u later! I started at 62 and went back to work at 64 making way over the limit but after FRA my benefit went up to partly make up for the months they took away. not a total loss!!

I was in a similar boat last year! Called SSA to ask about this and was on hold FOR HOURS only to get disconnected twice. Super frustrating! Finally used a service called Claimyr (claimyr.com) that got me through to a real person in under 5 mins. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. The agent confirmed everything about the earnings test and gave me a breakdown of exactly how much I'd lose per month based on my expected earnings. Worth it to get the personalized calculation!

Yep, it honestly does. I was skeptical too but was desperate after spending literal days trying to get through. They got me connected to an agent in about 3 minutes. The agent was able to look at my specific record and tell me exactly how much I'd lose each month based on my projected earnings.

To give you more specific information about your situation: 1. The earnings limit for 2025 is $22,320 if you're under Full Retirement Age for the full year 2. Since you'd be earning $55,000, that's $32,680 over the limit 3. SSA would withhold $1 for every $2 over the limit, so approximately $16,340 in benefits could be withheld 4. The year you reach FRA, the rules become more generous (only $1 for every $3 over a higher limit) 5. At FRA, as others mentioned, the earnings test disappears completely Also important: Any months where benefits are completely withheld due to work will be credited back to you at FRA, effectively recalculating your benefit as if you had claimed later than age 62. This helps offset some of the early claiming reduction.

THE SYSTEM IS DESIGNED TO PUNISH WORKERS!!! I went through this exact thing and SSA took EVERY PENNY of my benefits when I went back to work at 63. Then they had the nerve to say I owed them money for "overpayment" because I didn't report my earnings fast enough. They make these rules complicated ON PURPOSE so they can keep OUR MONEY!!!

Important thing nobody mentioned: SSA only counts EARNED income against you. If you have investment income, rental properties, lottery winnings, etc. - none of that counts toward the earnings test. Only wages from a job or net earnings from self-employment get counted. Also, in the year you reach FRA, they only count earnings BEFORE the month you hit FRA. So plan carefully around your birthday month!

my sister went thru this last yr. SSA is sloooow to adjust ur benefits when u start working. they kept paying her full amount for 6 months then suddenly wanted ALL that money back when they found out she was working!!! be sure u report ur work right away or ull be in same boat

One more thing to consider: if you return to work, especially at a good salary like $55,000, you'll be adding to your lifetime earnings record. Social Security calculates your benefit amount based on your highest 35 years of earnings. If this new job would replace a lower-earning year or a zero in your calculation, you could actually increase your benefit amount going forward, beyond just the adjustment for withheld benefits.

Just want to add one practical tip that helped me when I was in a similar situation: consider asking your potential employer if there's any flexibility in when you start or how your compensation is structured. Some employers are willing to delay a start date by a few months if it helps with your Social Security situation, or they might be able to structure part of your compensation as benefits rather than salary (which wouldn't count toward the earnings test). It's worth having that conversation since many employers these days are more understanding about Social Security considerations for older workers. Good luck with whatever you decide!