Many Americans wonder: can you collect Social Security and still work? The short answer is yes. But the details matter. As of October 2025, the Social Security Administration (SSA) has clear rules about how much you can earn, how your benefits are adjusted, and when restrictions no longer apply. Below is a comprehensive, up-to-date guide to working while receiving Social Security benefits.
Opening Overview: Can You Collect Social Security and Still Work in 2025?
You can collect Social Security and still work, even before you reach full retirement age. However, if your earnings exceed the annual threshold set by the SSA, a portion of your benefit may be withheld.
In 2025, the base earnings limit is $23,400 for those under full retirement age. In the year you reach full retirement age, the limit increases to $62,160 for earnings before your birthday month. Once you reach full retirement age, there is no earnings limit, meaning you can work freely without any reduction in benefits.
How Work Impacts Social Security Benefits
1. The Earnings Test: Under Full Retirement Age
If you are receiving Social Security retirement benefits and haven’t yet reached your full retirement age (FRA), the SSA applies what’s called the “earnings test.”
For 2025:
- The annual earnings limit is $23,400.
- You lose $1 in benefits for every $2 you earn above that threshold.
- Earnings include wages from employment or net income if you are self-employed. Bonuses, commissions, and vacation pay are also counted.
- Income from investments, pensions, Social Security itself, or dividends does not count toward the limit.
If your benefit is withheld due to excess earnings, it is not lost permanently. Once you reach full retirement age, your benefit will be recalculated to credit the months in which benefits were withheld.
2. In the Year You Reach Full Retirement Age
When you reach your FRA during the year, a different earnings threshold applies—but only for months before your birthday month:
- The limit in 2025 is $62,160.
- For earnings above that threshold, SSA deducts $1 for every $3 earned above it.
- After the month you reach FRA, no further deductions are made—your benefits are safe regardless of how much you earn.
3. At or After Full Retirement Age
Once you reach FRA, you can earn any amount without reducing your Social Security benefit.
Additionally, the SSA adjusts your benefit to account for any months in which benefits were withheld earlier. This means your future benefit amount may increase after reaching FRA.
Special Rule: First Year Earnings Flexibility
If you begin receiving Social Security benefits mid-year, a special rule offers flexibility for that first year:
- You are considered “retired” in any month where your earnings are under $1,950 (for those under FRA) and you aren’t performing “substantial services” in self-employment.
- Even if your annual earnings exceed the regular limit, you may avoid benefit deductions for any month you meet that “retired” status.
- For self-employed individuals, “substantial services” typically means working more than 45 hours per month or 15–45 hours in a highly skilled business.
This rule is particularly helpful for people who retire partway through the year but earned more earlier in the year.
Illustrative Examples in 2025
| Scenario | Status | Earnings | Effect on Benefit |
|---|---|---|---|
| Mary is 64 (below FRA) and earns $30,000 | Under FRA | $6,600 above limit | $1 withheld for every $2 over the limit = $3,300 reduction |
| John reaches FRA in September and earned $70,000 Jan–Aug | Year of FRA | $7,840 over $62,160 limit | $1 withheld for every $3 excess = $2,613 withheld |
| Lisa is 67 (FRA passed) and working | At/after FRA | $100,000 | No reduction—Lisa keeps full benefit |
Will Working While Receiving Benefits Ever Help Your Benefit?
Yes. When you work and pay Social Security taxes, your earnings may replace lower-income years in your earnings history:
- SSA reviews each year’s earnings and recalculates your benefit.
- If recent work years improve your average indexed monthly earnings, your benefit amount can increase.
- These increases are typically applied in January of the year after you earned the additional income.
However, these increases don’t usually offset benefit reductions applied earlier due to the earnings test.
Important Considerations You Should Know
- Benefits withheld due to excess earnings are not permanently lost; they are credited back once you reach full retirement age.
- These rules apply specifically to retirement or survivors benefits. Other programs, like Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), have different rules regarding work and benefits.
- If you work outside the U.S., different rules and international agreements may affect your benefits.
- Your Social Security benefits can be subject to federal income tax depending on your total income. Working may push you into a bracket where up to 85% of your benefits become taxable.
Why This Rule Structure Exists
These earnings rules are designed to balance two goals:
- Encouraging people to claim benefits at an age that reflects their retirement intentions.
- Allowing flexibility for people to work part-time or retire gradually.
- Removing barriers to full participation in the workforce after reaching full retirement age.
Once someone reaches FRA, the rules change to make it easy to keep working without reducing benefits.
Bottom Line
Yes—you can collect Social Security and still work, even before full retirement age. However, if you earn more than the allowed limits in 2025, part of your benefit may be temporarily withheld. Once you reach full retirement age, these restrictions disappear completely. This framework allows flexibility to balance work and retirement income as your circumstances evolve.
What are your plans for working while receiving Social Security? Share your experience or thoughts in the comments below.