How much can you earn while on Social Security?

After paying into Social Security for years, you want to be certain that when the time comes, you’ll receive the maximum benefit available. But what if you’d like to keep working, too? Beyond the financial implications, plenty of older Americans find social and emotional value in continuing to work. A Pew Research Center report found that 65% of employees 65 and older described their jobs as “enjoyable,” while 68% said their work was “fulfilling,” making this age group the most optimistic among all U.S. workers surveyed.

If you continue working while collecting Social Security, the impact on your benefits depends on two things: your age and how much you earn.

What is the full retirement age?

First, you’ll need to determine the age at which you become eligible for full Social Security benefits. Full retirement age ranges between 66 and 67, down to the month, depending on the year you were born. For many people—those born in or after 1960—the full retirement age is 67, per the Social Security Administration (SSA). If you were born in 1959, you’ll reach full retirement age at 66 years and 10 months.

Keep in mind: The SSA stipulates that you can start receiving Social Security benefits as young as age 62. However, drawing Social Security this early will permanently reduce benefits by as much as 30%, depending on when you were born and how far you are from full retirement age.

Conversely, per the SSA, you can increase your benefit amount if you wait beyond full retirement age to tap into Social Security. Your benefits stop increasing at age 70, even if you continue to delay receiving them.

How much can I make while on Social Security?

Once you’ve reached full retirement age, there’s no SSA-defined limit to how much you can earn while receiving full Social Security benefits. If you’re drawing benefits before that, however, you’ll need to monitor your income, as making money while on social security can impact your bottom line.

What’s included in my income?

When figuring any deductions to your benefits, the Social Security Administration (SSA) considers your earnings to include:

• Wages from your job
• Your net profit if you’re self-employed
• Bonuses
• Commissions
• Vacation pay

The SSA does not include in your earnings:

• Pensions
• Annuities
• Investment income
• Interest
• Veterans benefits
• Other government or military retirement benefits

The Social Security earnings limit can change over time—typically once a year—so be sure to bookmark the SSA website to stay informed and updated. Additionally, limits may vary depending on where you are in relation to your full retirement age, as outlined below.

Scenario 1: I am under my full retirement age for the entire year.

The SSA will deduct 50% of any Social Security earnings above the annual limit. For 2025, that limit is $23,400.

Example: Marianne, who started drawing Social Security at age 63, works part-time and will earn $25,000 in 2025. Since her income is $1,600 over the earnings limit, the SSA will deduct half of that, or $800, from Marianne’s annual Social Security benefit.

Scenario 2: I will reach full retirement age this year.

The SSA will deduct 33.3% of any Social Security earnings above a separate annual limit. In 2025, this limit is $62,160. Only your earnings through the month before you reach full retirement age count toward this limit, not the whole year’s earnings.

Starting with the month you reach full retirement age, your income no longer impacts your benefits, no matter how much you earn.

Example: Paulo, who reaches his full retirement age in November 2025, is entitled to $1,200 per month in Social Security benefits. In 2025, he works full time and earns $100,000. Of that income, $83,333 was earned from January through October, meaning Paulo has exceeded the earnings limit during that 10-month period by $21,173.

Paulo’s benefit will be reduced through October by $1 for every $3 he earned above the limit, or roughly $7,058 (one-third of $21,173). This means he’ll receive $4,942 of the possible $12,000 in the first 10 months of the year. Beginning in November 2025, though, Paulo will receive his full monthly benefit, no matter how much he works.

The special earnings limit rule

Some people who file for benefits during the year have already surpassed the annual earnings limit. In these cases, a special rule allows you to receive full Social Security checks for the rest of the year once the SSA considers you officially retired. You meet these criteria if you:

• Are below the full retirement age for all of 2025, earn less than $1,950 a month, and did not perform substantial services in self-employment
• Reach full retirement age during 2025, earn less than $5,180 a month, and did not perform substantial services in self-employment
  • Note:The SSA defines “substantial services” as dedicating more than 45 hours a month to a business or between 15 and 45 hours a month to a business requiring a highly skilled occupation.

This special rule only applies once, usually in the first year of retirement. Otherwise, you’re subject to the annual earnings limit until you hit full retirement age.

The best of both worlds

Tapping into Social Security doesn’t mean saying goodbye to the working world forever. That’s good news for anyone who still finds joy, camaraderie, or a sense of purpose in having a job. If you choose to keep working, you’ll just need to pay close attention to your income and consider an approach that maximizes the balance of earning potential and SSA payments.

If you’re ready to say so long to working entirely, check out these steps to take for retirement planning.

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The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates.