In the United States, many people claim Social Security benefits for different reasons—not just due to unemployment. Some start receiving benefits early, some continue to work after retirement, and others might need financial help due to health or life situations.
But there’s an important rule to remember: how much you earn from work affects how much Social Security you receive, especially if you’re below full retirement age.
Let’s break it down in a simple way, so you know exactly how your earnings can impact your Social Security payments in 2025.
What Happens If You Work While Getting Social Security?
If you are under full retirement age, and you earn more than the yearly limit, your Social Security benefit will be reduced. This is meant to avoid people drawing full benefits while still earning a high income from full-time work.
As per the Social Security Administration (SSA), for 2025, the annual earnings limit is:
- $23,400 for those under full retirement age
- $62,160 in the year you reach full retirement age, but only for income earned before the month you reach that age
After you reach full retirement age, there are no limits on your earnings, and your benefits will not be reduced—no matter how much you earn.
How Much Will Be Deducted?
Here’s how the SSA calculates deductions from your benefits:
1. If You Are Below Full Retirement Age All Year
For every $2 you earn over $23,400, the SSA will deduct $1 from your benefits.
2. If You Will Reach Full Retirement Age in 2025
For every $3 you earn over $62,160, the SSA will deduct $1, but only for the money earned before the month you turn full retirement age.
Once you enter the month of your full retirement age, there is no deduction, no matter your income.
What Counts as Earnings?
There’s often confusion about what counts as income when calculating these limits. Many people earn from investments, property, or pensions—but not all of these are counted by the SSA.
According to the SSA:
Counted as Earnings:
- Wages from jobs
- Net income if you are self-employed
- Bonuses
- Commissions
- Vacation pay
Not Counted as Earnings:
- Pensions
- Annuities
- Investment income
- Rental income
- Interest from savings
- Veterans benefits
- Military or other government retirement benefits
Only work-related income affects your Social Security benefit. So if you have savings or receive a pension, these will not reduce your monthly Social Security check.
Will Working Affect My Future Benefits?
Yes, but in a positive way.
If you’re still working while receiving Social Security, you are still paying Social Security taxes. The SSA checks your earnings every year and may increase your benefit based on your additional work.
If your new earnings are higher than past years, the SSA will recalculate your benefit and send you a new letter with the updated amount.
So, even if your benefit is reduced now due to high income, you may get higher payments later.