Yes, you can work and collect Social Security retirement benefits at the same time—but depending on your age and earnings, your payments might be temporarily reduced. Here’s a detailed guide to how it works, and how it could actually increase your benefits later on.
Many people assume that starting Social Security means stopping work entirely—but that’s not always the case. In fact, you can still earn a paycheck while receiving Social Security retirement benefits. However, depending on when you claim your benefits and how much you earn, there could be some temporary adjustments to your monthly payments.
How Your Age Impacts Your Benefits
If you were born on or after January 2, 1960, your full retirement age (FRA) is 67. You can start receiving Social Security as early as 62, but doing so before reaching FRA means your monthly benefits may be reduced if you continue to work.
For example, if you’re working and under full retirement age, the Social Security Administration (SSA) will withhold $1 in benefits for every $2 you earn above the annual earnings limit. In 2025, that limit is set at $23,400.
If you’ll reach full retirement age in 2025, the rules change slightly: the SSA will only withhold $1 for every $3 you earn over $62,160, and only earnings before the month you hit your FRA are counted.
Your Benefits Will Be Recalculated Later
Here’s the good news: those withheld benefits aren’t lost forever. Once you reach full retirement age, the SSA will recalculate your monthly benefit to credit you for the months when payments were reduced. That means your monthly benefit will increase going forward.
Earning More Can Also Boost Your Benefit
There’s another way continued work can help you: if your new earnings are higher than any of the top 35 income-earning years used to calculate your original benefit, the SSA will update your record. Your lowest earning year in that 35-year span will be replaced with your new, higher income—resulting in a larger monthly benefit.
Just remember: if your income significantly changes while you’re receiving Social Security, you’re required to notify the SSA about your expected earnings for the year.
Don’t Forget About the COLA
Finally, all Social Security recipients benefit from the annual cost-of-living adjustment (COLA), which increases benefit payments to keep up with inflation—even if the raise is modest, like in some recent years.
Bottom Line
Working during retirement doesn’t mean giving up your Social Security benefits. With careful planning and a good understanding of how the system works, you can continue earning an income while positioning yourself for higher benefits in the future.