A recent survey found that 75% of current workers plan to continue working for pay after they retire.¹ That raises an important question:
How will working impact Social Security benefits?
To answer that, let’s break it down into three key concepts:
📅 Full Retirement Age
There’s no official retirement date in the eyes of Social Security. You can start claiming benefits as early as age 62 or delay them until age 70.²
Full retirement age (FRA) is when you’re eligible to receive 100% of your benefits.
For those born in 1960 or later, FRA is 67.
💼 The Earnings Test
If you claim Social Security before full retirement age and keep working, the earnings test applies.
For 2025, you can earn up to $23,400 without reducing your benefits.³
Above that, $1 is deducted for every $2 you earn.
In the year you reach FRA, the limits are more generous:
You can earn up to $62,160 before the month you reach FRA.³
Above that, $1 is deducted for every $3 earned.
Example:
Let’s say you reach FRA this year and earn $65,000 before your birthday.
Earnings over the limit: $65,000 – $62,160 = $2,840
Reduction: $2,840 ÷ 3 = $946.67
Your annual Social Security benefit would be reduced by $946.67
💰 Taxable Benefits
Once you reach full retirement age, your benefits won’t be reduced no matter how much you earn—but they may be taxed.
For couples filing jointly:
If your combined income is $32,000–$44,000, up to 50% of benefits may be taxable.⁴
If combined income is over $44,000, up to 85% may be taxable.⁴
✅ Takeaway
There’s a lot to consider when it comes to Social Security and working in retirement. Understanding how your benefits may be reduced or taxed can help you build a strategy that makes the most of all your retirement income sources. Have questions about how Social Security fits into your retirement plan? We’re here to help—feel free to reach out anytime!
Sources:
EBRI.org, 2024
SSA.gov, 2024
SSA.gov, 2024
SSA.gov, 2024