Social Security retirement at 62 with earnings limit - how much can my husband work without penalty?

For 2025, the annual earnings limit for someone collecting before their Full Retirement Age (FRA) is $23,160. That means your husband can earn up to that amount in the calendar year without penalty. If he goes over, SSA will withhold $1 in benefits for every $2 he earns above that limit. This is an ANNUAL limit, not monthly, but SSA will ask for his expected earnings when he applies. It doesn't matter if it's self-employment or regular W-2 work - all earnings count toward the limit.

I'm going through the EXACT same thing right now!! My husband is also 62 and getting about $1,300 in SS benefits. The person who helped us at the SSA office said something about a "grace year" rule too? Apparently the first year you retire, they count your earnings differently - by MONTH rather than the whole year. So if your husband earns more than $1,930 in any month during the first year, they might withhold benefits for that month. It's SO CONFUSING! I've called three times and got different answers!

You've received good information about the 2025 earnings limit ($23,160/year before FRA), but I'd like to add a few important points: 1. The "grace year" rule only applies if your husband is retiring mid-year and had significant earnings before claiming benefits. 2. If benefits are withheld due to working, your husband will actually receive an increase in his monthly benefit amount after reaching Full Retirement Age to account for the months benefits were withheld. 3. In the calendar year your husband reaches his Full Retirement Age, the earnings limit jumps significantly to $61,560 (for 2025), and only earnings before his FRA birthday month count. 4. Once he reaches his FRA, there is NO earnings limit - he can earn any amount without penalty. One last thing - the earnings limit only counts employment income. Investment income, pension, interest, etc. don't count toward the limit.

If I was ur husband Id wait till 67 to claim!! He'll get WAY more money, my uncle got 40% more by waiting. Plus then theres no earning limit at all. Just my 2 cents

Something nobody mentioned - your husband should be VERY careful about how he reports his expected earnings when he applies. If he tells them the wrong amount (either too high or too low), it can create a huge headache later. I had the worst experience with this last year. I told them I'd earn about $15K, but ended up earning $28K. They discovered it when my W-2 was filed, and suddenly I got a notice saying I had a $6,500 OVERPAYMENT! I had to pay back all that money. I spent WEEKS trying to call SSA to set up a payment plan. The phone lines were always busy or I'd get disconnected after waiting for 2+ hours. Finally found this service called Claimyr (claimyr.com) that got me through to an actual SSA agent in 20 minutes instead of spending days trying. They have a video showing how it works here: https://youtu.be/Z-BRbJw3puU. The agent set up a reasonable payment plan so I didn't have to pay it all back at once. Just be super accurate with the earnings estimate is my point!

My husban just went thru this!!! The $23,160 limit is BEFORE any deductions like taxes, health insurance, 401k, etc. Its your GROSS income that counts not take-home pay. They don't tell you that part unless you ask!!!!!!

Just wondering if your husband considered working just under the limit? My husband is working exactly up to the limit ($23,160 ÷ 12 = $1,930/month) and keeping track VERY carefully so he doesn't go over. His boss lets him leave when he hits the monthly amount. Could your husband do something like that?

One more important detail: if 2025 will be your husband's first year receiving benefits, SSA applies the Monthly Earnings Test for the remainder of that calendar year. This means he can receive full benefits for any month he earns less than $1,930 (2025 figure), regardless of his annual total. For example, if he stops working completely for some months, he'll receive full benefits those months even if his yearly total exceeds the annual limit. Starting with the second calendar year on benefits, only the annual test applies. Also, if your husband will reach FRA in 2025, different rules apply for the months of that year leading up to his FRA month.

My sister went through this and just didn't report some of her cash jobs. Just saying...

Based on your description, you may want to consider whether your husband qualifies for the Retirement Earnings Test (RET) exemption if he's in certain situations: 1. If he's truly retiring (reducing hours and earnings significantly) 2. If he's self-employed and will perform minimal services There's also a special rule when calculating benefits if he's truly stopping substantial work mid-year. In that case, regardless of annual earnings, he can receive full benefits for months where he earns under the monthly limit ($1,930 in 2025) AND doesn't perform substantial services in self-employment. I suggest scheduling an appointment with SSA to discuss these special rules, as they might apply to your husband's seasonal work situation.