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Can You Keep Working and Still Receive Social Security Benefits?

May 9, 2023

Most retirees quickly learn that Social Security benefits don’t cover their entire cost of living. Hopefully you knew this information pre-retirement, and already planned on another form of income for your later years. But if you want or need to work part-time, you might be wondering how that income can impact your Social Security benefits. 


The answer is, it depends upon your age. If you claim your benefits before the “full retirement age” (now 66 to 67, depending upon your year of birth), then your benefits will be reduced if you claim them early and then continue to work. 


Each year, the Social Security Administration establishes an annual earnings limit. Then, those who claimed their benefits early will see their benefit payments reduced by one dollar for every two dollars they earn above that limit. In 2023, that limit is set at $21,240. 


During the year in which you turn your full retirement age, your benefits will be reduced by one dollar for every three dollars you earn above the limit. Then, when you reach full retirement age, from that month onward your benefits will not be reduced. 


Only earnings from work are counted toward the income limit; you can also receive pension payments, investments, annuities, etc without any reduction to your benefits. 


However, if you simply wait until your full retirement age to claim your payments, you can work as much as you want. Your benefit checks will not be reduced. 


Claiming your benefits early will mean that your monthly payments are permanently set at the lower amount (up to one-third lower than you would have received if you had waited until full retirement age). But sometimes it becomes necessary to claim benefits early, or can even be a good idea in some situations. 


For more on this topic, let’s schedule an appointment to discuss your retirement planning options. We can help you determine when to retire and claim your Social Security benefits, along with planning for other income in retirement. 

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