{"id":353883,"date":"2023-08-03T12:57:39","date_gmt":"2023-08-03T17:57:39","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/socialsecurity\/basics\/social-security-how-work-affects-your-benefits.html"},"modified":"2026-03-17T17:40:47","modified_gmt":"2026-03-17T22:40:47","slug":"social-security-how-work-affects-your-benefits","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/socialsecurity\/basics\/social-security-how-work-affects-your-benefits.html","title":{"rendered":"How Working in Retirement Affects Social Security Benefits"},"content":{"rendered":"\n
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How Working in Retirement Affects Social Security Benefits<\/h1>\n\n
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\n By Hannah Hilst<\/a> | Legally reviewed by Jennifer Steinberg, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

If you plan to work in retirement, your income may lower your monthly Social Security payments<\/span>. This reduction depends on your age and your additional earnings<\/span> through work. Once you reach retirement age, your extra income won’t lower your benefits.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

You might have a sizeable retirement fund already. Or maybe you\u2019re still working on your retirement plan<\/span> and considering when you could afford to retire.<\/p>\n

Either way,\u00a0Social Security <\/span>retirement benefits<\/span>\u00a0will likely be fundamental to your\u00a0retirement income<\/span><\/a>. Yet, you may be concerned that your Social Security <\/span>retirement benefit<\/span> payments may not be enough to help you live comfortably until the end of your life. After all, the Social Security Administration<\/span> (SSA<\/span>) projects the\u00a0retirement trust fund<\/a>\u00a0can only pay full benefits<\/span> until 2033.<\/p>\n

The good news is that you can\u00a0supplement your income by working\u00a0while you collect Social Security <\/span>retirement benefits<\/span>. But in some cases, the SSA<\/span> may reduce your benefits.<\/p>\n

Learn how work may affect retirees<\/span>\u2019 Social Security <\/span>retirement benefits<\/span> in this article. A lawyer near you<\/a> can also give you detailed advice and help answer questions about how to protect your benefits.<\/p>\n

Start by Estimating Your Social Security <\/span>Retirement Benefits<\/span><\/h2>\n

Social Security payroll taxes partly determine Social Security retirement\u00a0eligibility. The Social Security taxes you\u2019ve paid earn you \u201ccredits” toward retirement benefits<\/span>. Your Social Security statement <\/a>can tell you how many credits you\u2019ve earned and the benefits you may receive.<\/p>\n

The SSA<\/span>\u00a0calculates benefits<\/a>\u00a0by considering your covered earnings (earnings subject to Social Security taxation) and your birth year. It references your 35 highest-earning years<\/span> before the age at which you claim benefits. Self-employed<\/span> workers<\/a> must report their earnings records to the IRS and the SSA<\/span> for annual credit calculations.<\/p>\n

A taxpayer may claim Social Security <\/span>retirement\u00a0benefits<\/span> early\u00a0at age 62. But claiming retirement benefits<\/span> early will result in a\u00a0reduced amount\u00a0than had you waited until\u00a0full retirement age<\/span><\/a> (FRA<\/span>). You\u2019re entitled to 100% of your benefits at full retirement age<\/span>.<\/p>\n

Another factor to consider is that family members may qualify for monetary and other benefits through your work record. For instance, your spouse (and you) may be eligible for Medicare<\/span><\/a>, which usually starts when people reach 65.<\/p>\n

Will I Lose My Social Security Benefits<\/span> if I Work?<\/h2>\n

Working during retirement will not automatically disqualify you from Social Security benefits<\/span>. It is still possible to collect Social Security benefits<\/span> while earning income through employment.<\/p>\n

Regardless of your employment status, the SSA<\/span> will view you as officially \u201cretired\u201d once you file to claim retirement benefits<\/span><\/a>. Even if you work, your eligibility won\u2019t be canceled, and any current monthly benefits<\/span> won\u2019t suddenly stop completely.<\/p>\n

You might want to work full time, or maybe you\u2019re planning to pick up freelance projects on the side. In either case, you\u2019ll have to consider what could happen to your benefits in your specific situation. Your income and age will determine whether your benefits would change.<\/p>\n

How Will the Extra Income<\/span> Affect My Benefits?<\/h2>\n

If you work after collecting your full Social Security benefit<\/span> at your full retirement age<\/span> or later, you may keep all your monthly benefits<\/span>. This is true no matter how much you earn. But, if you haven\u2019t reached your FRA<\/span> and work while collecting Social Security checks<\/span>, the SSA<\/span> may decrease your Social Security benefits<\/span> if you earn over a certain amount.<\/p>\n

But performing work before full retirement age<\/span> may\u00a0not reduce the total value\u00a0of your lifetime benefits. At full retirement age<\/span>, the SSA<\/span> will recalculate<\/span> your benefits. It will credit you for reduced or withheld benefits<\/span> due to earnings over the limit. Also, the SSA<\/span> will increase your benefit if higher wages raise your benefit amount<\/span>.<\/p>\n

Suppose you are a\u00a0spouse or survivor<\/a>\u00a0with minor children or children with disabilities<\/a> in your care. If you work and have benefits withheld, you will not receive increased benefits at full retirement age<\/span>.<\/p>\n

Different rules may apply<\/a>\u00a0if you work or plan to work outside the country. Special rules<\/span> may also apply if you are a disability benefits beneficiary<\/span>. This means you receive Social Security disability benefits from either the Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) programs. Working can affect disability benefits<\/a>. In these situations, you have to report all earnings to the SSA<\/span>.<\/p>\n

How Much Can I Earn and Still Get Social Security Benefits<\/span>?<\/h2>\n

The SSA<\/span> sets two income limits<\/span> based on the beneficiary<\/span>\u2019s age relative to their full retirement age<\/span>. This rule allows you to collect a higher portion of your benefits as you get closer to your FRA<\/span>. Note that the dollar amount of the annual <\/span>earnings<\/span> limit<\/span> can change because the SSA<\/span> recalculates<\/span> it each year.<\/p>\n

The SSA<\/span> reduces benefits<\/a> as follows:<\/p>\n