Retirement

Working While Retired

September 21, 2017 • By

Reading Time: 2 Minutes

Last Updated: October 5, 2021

two women smiling and looking at flowersRetirement life is different for everyone. Social Security is here to secure today and tomorrow, whether you sail into the sunset or decide to continue working. Some of our rules allow you to receive Social Security retirement or survivor benefits and work at the same time, as long as you don’t make more than Social Security’s annual earnings limit. For 2021, that limit is $18,960.

If you’re younger than full retirement age and make more than the yearly earnings limit, we’ll reduce your Social Security benefits. But starting with the month you reach full retirement age, we will not reduce your benefits, no matter how much you earn. Our Retirement Portal explains the requirement and deductions, and what happens after you reach full retirement age.

Two of our online tools can help you find the information you need to make the right decision for you. You can find your full retirement age based on your date of birth by using our Retirement Age Calculator. Our Retirement Earnings Test Calculator can help you find out how much your benefits may be reduced if you are working and haven’t reached your full retirement age.

There are several things to consider if you plan to continue working after you retire. Our website gives you detailed information for the type of employment that you have. It also explains what types of pensions, annuities, and income do not count toward your earnings limits.

Additional earnings after you start collecting benefits might increase your monthly benefit. If there’s an increase, we’ll send you a letter telling you of your new benefit amount. If you think your earnings will be different than what you originally told us, let us know right away. For more information, read our publication, How Work Affects Your Benefits, or visit our website. No matter what you decide to do with your retirement life, you can count on Social Security.

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About the Author

Jim Borland, Acting Deputy Commissioner for Communications

Jim Borland, Acting Deputy Commissioner for Communications

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Comments

  1. Susan

    Is the amount of earnings the same (16,920) with a 2 person household

  2. Dale E.

    What is the first step to report wage earnings? My start date is 9/09/10

  3. Myrleen K.

    I have to work because my social security only covers my rent. I just got laid off 2 months ago and up to that point i had insurance. At present I’m unemployment. I have to continue working, since i am not ready for full retirement. How can I get insurance until I return to work.

    • A.C.

      Hi, Myrleen. We are sorry to hear about your situation. If you do not currently have medical insurance, you should contact the social services office for the state in which you live. You can also check the health insurance Marketplace to see if you qualify for any insurance plan. We hope this helps.

  4. Maria E.

    Im 62 and already receiving retirement benefits and i want to know if i can apply for unemployment or if what i get from unemployment would count for the among I’m allow to earn ?

    • L.A.

      Hi Maria. Thank you for your question. Unemployment insurance benefits are not counted under the Social Security annual earnings test and therefore do not affect your receipt of Social Security benefits. However, if you also receive Supplemental Security Income (SSI) benefits, we will count the unemployment benefits as “unearned income” and may temporarily or permanently suspend the SSI benefits. For more information about receiving Social Security and unemployment at the same time go here. You may also call our toll-free number at 1-800-772-1213 (TTY 1-800-325-0778) representatives are available between 7:00 a.m. and 7:00 p.m., Monday through Friday or visit your local Social Security office. We hope this information is helpful.

  5. Shirley C.

    I want to know if any of the money they take out of my check for social security each month since i started drawing at 62 will be give to me or does some one else get what i paid in which is a lot i want to retire im 76 but i dont know if i will draw enough money ?

  6. Ricardo

    My scenario.
    Income 1 – 12K/yr. Retirement annuity City A from contributions
    Income 2 – 100K/yr. Retirement annuity City B from contributions
    Income 3 – 170K/yr. Employment salary City C

    I pay FICA and federal taxes to Income 3
    I pay federal taxes for income 1 & 2

    Question… Am I required to pay FICA for incomes 1 & 2?

    • L.A.

      Hi Ricardo. For tax questions, you will need to contact the Internal Revenue Service (IRS). You may contact the IRS by calling its toll-free number 1-800-829-1040 or by visiting online. We hope this helps.

  7. Harris E.

    I would like to know if my retirement benefits will go up because I’m working and paying taxes… Clarification: I am retired and receiving benefits; I retired at age 67. I returned to work and paying taxes and I need to know if my present benefits are going up because I’m paying into social security.

  8. Harris E.

    I would like to know if my retirement benefits will go up because I’m working and paying taxes.

  9. Alecia

    What is the penalty if you work and make $40,000 per year but would like to continue working and apply for my social security. Will I be penalized by social security. I am currently 67 years old.

  10. david s.

    If I earn more than the 16,250 and I am not at the full retirement age what amount do I receive?

    • A.C.

      Hi, David. Thanks for your question. If you are receiving retirement benefits, check out how work affects Social Security payments here. We hope this helps.

Comments are closed.