Working While Retired
Reading Time: 2 MinutesLast Updated: October 5, 2021
Retirement 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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Tags: retirement, retirement benefits
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Jim Borland, Acting Deputy Commissioner for Communications
Jim Borland, Acting Deputy Commissioner for Communications
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Delores B.
I reach full retirement Age January 2020 if I was to remarry, And she still works a full-time job with that affect my benefit?
A.C.
Hi, Delores. Thanks for your question. If you receive retirement or Social Security disability insurance (SSDI) benefits, your marriage will not affect your benefit. If you are receiving Supplemental Security Income (SSI), widow or widower’s benefits, your marriage may affect your benefit. To learn more about how marriage affects benefits, please visit our Frequently Asked Questions. We hope this helps.
Mary K.
If I receive a pension in addition to my social security, does that count toward the annual earnings limit?
A.C.
Hi, Mary. Thanks for your question. For the earnings limits, we don’t count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains. We do count an employee’s contribution to a pension or retirement plan, however, if the contribution amount is included in the employee’s gross wages. Check out how work affects Social Security payments here. We hope this helps.
Michael R.
I have been retired and receiving benefits since I was 62. I am now 63.5 yrs old. I plan to return to work in January 2020 I will make approx. 100k by July. What do I need to do and when will my benefits return?
Please let me know…
A.C.
Hi, Michael. Since you are younger than full retirement age during all of 2020, we must deduct $1 from your benefits for each $2 you earn above $18,240. Check out how work affects Social Security payments here. If you have returned to work, you can notify us by calling us at 1-800-772-1213, Monday through Friday, between 7:00 a.m. and 7:00 p.m., for assistance. Generally, you will have a shorter wait if you call later in the day. You can also contact your local Social Security office. We hope this helps!
Tsukasa H.
Where to forward when I start working while receiving Social Security benefit. In addition, what to address , for example, earning , S.S. Number, company address, etc.
A.C.
Hi, Tsukasa. Thanks for your question. If you are not already receiving benefits, be sure to contact us at the beginning of the year before you reach full retirement age. Even if you are still working, you may be able to receive some or all of your benefits for the months before you reach full retirement age. For more information, visit our Retirement Planner: Getting Benefits While Working. We hope this helps.
jeff
I’m looking at starting my retirement benefits this month as I’m retiring from my current job where I earned $60,000. I will be doing consulting where I would earn about $1200 a month. I read about the annual earning test and have a question. Will it only be for the month of December (as you pay a month behind) or does it carry over to next year as the grace year.
L.A.
Hi Roy. If you are younger than full retirement age during all of 2019, we must deduct $1 from your benefits for every $2 that you earn above $17,640 (or $1,470 per month) limit for the year. For more information, please see our publication titled “How Work Affects Your Benefits.” We hope this helps.Please note that for your security, we do not have access to your Social Security record in this forum. Please call our toll-free number 1-800-772-1213 (TTY 1-800-325-0778) or follow up with your local Social Security office for assistance. We hope this helps.
L.A.
Hi Roy. If you are younger than full retirement age during all of 2019, we must deduct $1 from your benefits for every $2 that you earn above $17,640 (or $1,470 per month) limit for the year. For more information, please see our publication titled “How Work Affects Your Benefits.” Please note that for your security, we do not have access to your Social Security record in this forum. Please call our toll-free number 1-800-772-1213 (TTY 1-800-325-0778) or follow up with your local Social Security office for assistance. We hope this helps.
Sandra (.
I will turn 65 in January, 2020 and I have decided not to retire. I have full medical coverage through my company.
Do I still need to sign up for Part A before my birthday?
I have been told that once you are signed up for Part A Medicare, you can no longer contribute to an HSA. However, the money I have contributed in years past remains mine to use, correct? I can pay medicare premiums with it or use it for other medical services, correct?
L.A.
Hi Sandra. Thank you for your question. Most people need to enroll in Medicare at age 65. However, people who are turning age 65 and are still working, have the choice to delay signing up for Medicare if they are covered under a group health plan based on their employment. Please speak with your employer and health insurance plan to see what is best for you. You may also wish to contact your local Medicare SHIP (State Health Insurance Program Coordinator) to discuss your options. You can read more about Medicare coverage on our internet page, and our publication titled “Medicare.” We hope this helps.
Tom M.
If I have private insurance do I have to have medicare
L.A.
Hi Tom. Please note that for your security, we do not have access to your personal information in this forum. In your situation, please call Medicare at their toll-free number, 1-800-Medicare (1-800-633-4227), (TTY 1-877-486-2048). You should also contact your local Medicare SHIP (State Health Insurance Program Coordinator) to discuss your health insurance options. We hope this helps..
bob
I am receiving full Social Security and still working. My Medicare payments are based on my our (wife & I) total income from last year. However, I am still working full time and pay Medicare out of my wages. Shouldn’t the amount I already pay from my wages be deducted from the amount withdrawn from my Social Security payment?
Cat
Will these types of investment and income count toward my yearly earnings limits. If I retire early. For example:
1.Does my social security checks count toward my earning limits for that year?
2.If I have to sell my home does that investment count toward my earning limits for that year?
Also will my social security check be tax?
Catherine L.
Will these types of investment and income count toward my yearly earnings limits. If I retire early. For example:
1.Does my social security checks count toward my earning limits for that year?
2.If I have to sell my home does that investment count toward my earning limits for that year?
Also will my social security check be tax?
A.C.
Hi, Catherine. Thanks for your questions. If you work for someone else, only your wages count toward Social Security’s earnings limits. If you’re self-employed, we count only your net earnings from self-employment. For the earnings
limits, we don’t count income such as other government benefits, investment earnings, interest, pensions, annuities, and capital gains. We do count an employee’s contribution to a pension or retirement plan, however, if the contribution amount is included in the employee’s gross wages. For more information about how work affects your benefits, visit here. As far as taxes, under current law, the Internal Revenue Service (IRS) considers Social Security benefits taxable income for beneficiaries whose countable income exceeds certain limits. To learn more about those income thresholds, visit our Benefits Planner: Income Taxes and Your Social Security Benefit. For any income tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040 or you can visit their website at http://www.irs.gov/. We hope this helps.