Social Security is one of the most important programs in the United States, providing financial assistance to millions of Americans. Whether you are retired, disabled, or the survivor of a loved one, Social Security benefits can make a big difference in your financial well-being. But what if you’re still working? Can you collect Social Security while working? The short answer is yes, but there are some important things you need to know before you decide to do so.
Understanding Social Security and Work
First, let’s talk about what Social Security is. Social Security is a government program that provides benefits to people who are retired, disabled, or survivors of someone who paid into the system. To get these benefits, you need to work for a certain number of years and pay Social Security taxes.
If you’ve reached full retirement age (FRA), which is currently 66 or 67, depending on the year you were born, you can work and still collect your full Social Security benefits. But if you are younger than FRA and still working, your benefits may be reduced based on how much money you earn.
What Happens If You’re Under Full Retirement Age?
If you’re under your full retirement age and you’re still working, the Social Security Administration (SSA) will reduce your benefits if your income is too high. Here’s how it works:
- In 2025, if you’re under full retirement age and earn more than $21,240 a year, your benefits will be reduced by $1 for every $2 you earn above that limit.
- In the year you reach full retirement age, the rules change. You can earn up to $56,520 without any reduction in benefits. However, if you earn more than that, your benefits will be reduced by $1 for every $3 you earn above that limit. Once you reach your FRA, you can work and earn any amount without your benefits being affected.
How Does This Impact Your Social Security Benefits?
It’s important to remember that your Social Security benefits aren’t permanently reduced if you earn too much before reaching your FRA. The SSA has a system in place to give back some of the benefits that were withheld. When you reach full retirement age, the SSA will recalculate your benefits, taking into account the months when you had a reduction due to your earnings. This means that even if your benefits were reduced, you might receive higher payments once you reach FRA.
Earning More After Full Retirement Age
Once you reach your full retirement age, there are no limits on how much you can earn. You can work full-time, part-time, or as much as you want without worrying about your Social Security benefits being reduced. In fact, if you continue to work and pay into Social Security after you reach your FRA, your benefits could even increase. This is because your benefits are calculated based on your highest 35 years of earnings, so working longer and earning more may result in higher monthly benefits.
What if You’re Receiving Social Security Disability?
If you are receiving Social Security Disability Insurance (SSDI), the rules are a bit different. While you can work and still receive SSDI benefits, there are limits to how much you can earn before your benefits are affected. The SSA sets a monthly earnings limit, known as the substantial gainful activity (SGA) limit. If you earn more than this amount, the SSA may stop your SSDI benefits.
For 2025, the SGA limit for non-blind individuals is $1,470 per month. If you earn more than that, your benefits may be stopped. However, if you are able to work and earn money without losing your benefits, it’s called a “trial work period.” During this period, you can work and earn any amount of money without affecting your benefits. After the trial work period ends, your earnings will be reviewed, and if they are above the SGA limit, your SSDI benefits may stop.
Survivors and Social Security Benefits
If you are a survivor of someone who paid into Social Security, you can collect Social Security benefits based on their work record. Just like with regular Social Security benefits, if you are under full retirement age and continue to work, your benefits may be reduced if your earnings exceed certain limits. However, once you reach FRA, you can work and earn as much as you want without affecting your benefits.
Conclusion
In short, you can absolutely work and collect Social Security benefits. The key is understanding the rules and limits that apply based on your age, earnings, and type of Social Security benefits. If you’re under full retirement age and working, your benefits might be reduced based on how much you earn. However, if you’re at or above your full retirement age, you can work and collect your full Social Security benefits without any reductions.
Keep in mind that the rules can vary if you’re receiving disability or survivor benefits, so it’s always a good idea to check with the SSA or a financial advisor for advice specific to your situation. Working and collecting Social Security at the same time can be a great way to boost your income – just be sure to stay informed about how your earnings could impact your benefits.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
Jon King is an experienced journalist with 3 years of experience in the field. With a strong background in investigative reporting, Jon is known for his in-depth coverage of crime news, finance news, local news, and USA news. Currently working with Mikeandjonpodcast, Jon brings his sharp investigative skills, where he provides timely updates and analysis on a wide range of topics. His commitment to delivering accurate and impactful news has earned him a reputation for providing insightful and comprehensive stories that resonate with his audience.
