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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Paul
I am 68 years old, still working and plan on starting social security in March of 2021, so I will have wages for January and February. Will I be subject to the $50,520 limit for 2021?
V.V.
Hi Paul, thanks for using our blog. Once you reached your full retirement age, earnings no longer reduce your benefits, no matter how much you earn.
Keep in mind, if you continue to work while receiving retirement benefits, your monthly benefit amount may increase. As long as you continue to work and receive benefits, we will check your record every year to see whether the additional earnings will increase your monthly benefit. If there is an increase, we will send you a letter telling you of your new benefit amount.
John F.
I’m collecting social security and not working, but I’m planning to go back to work, do I have to contact the SSA to inform them.
V.V.
Hi John, thanks for using our blog. The amount you’re allowed to earn while receiving benefits depends on your age. If you attain full retirement age in 2021, the earnings limit is $50,520 but we only count earnings before the month you reach full retirement age. Beginning with the month you reach full retirement age, earnings no longer reduce your benefits, no matter how much you earn. If you’re under full retirement age for the entire year, then we deduct $1 from benefit payments for every $2 earned above the annual limit. For 2021, that limit is $18,960.
Visit our Retirement Planner: Getting Benefits While Working for more details. If you plan to earn over these limits, you should call Social Security to report your estimated income. You can call us at 1-800-772-1213 for assistance or you can contact your local Social Security office. Please look for the general inquiry telephone number at the Social Security Office Locator. The number may appear under Show Additional Office Information. Please be aware that our call wait times are longer than normal. We hope this information helps.
Jerry M.
We are to get a pension after we leave employment. Will this be counted as income when we apply for Social Security?
Robert W.
does my wife’s income count -we file jointly
V.V.
Thank you for the question, Robert. When we figure out how much to deduct from your benefits, we count only your wages that you make from your job or your net profit if you’re self-employed. We include bonuses, commissions, and vacation pay. We don’t count your wife’s income, pensions, annuities, investment income, interest, veterans, or other government or military retirement benefits.
After you retire, you may receive payments for work you did before you started getting Social Security benefits. Usually, those payments will not affect your Social Security benefit if they are for work done before you retired. Check out our factsheet Special Payments After Retirement for more details. We hope this information is helpful!
Cline S.
If retiring early is a company pension counted as an income?
If retiring early and withdraw money from a 401k is that money counted as an income?
$18,960 is the limit for income in 2021 would either of these things above put me over the limit if i receive them?
V.V.
Thank you for the question, Cline. When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net profit if you’re self-employed. We include bonuses, commissions, and vacation pay. We don’t count pensions, annuities, investment income, interest, veterans, or other government or military retirement benefits.
After you retire, you may receive payments for work you did before you started getting Social Security benefits. Usually, those payments will not affect your Social Security benefit if they are for work done before you retired. Check out our factsheet Special Payments After Retirement for more details.
Conny
If an individual is 80 yrs old, still working full time, and receives social security benefits, should they still be paying social security tax via their weekly paycheck.
V.V.
Hi Conny, thanks for using our blog. When an individual works for covered employment, they pay FICA taxes into Social Security, regardless of their age. However, if they continue to work while receiving retirement benefits, their monthly benefit amount may increase. We will automatically check their record every year to see whether the additional earnings will increase their monthly benefit. If there is an increase, we will send them a letter telling them of their new benefit amount. We hope this is helpful!
Susan C.
I turned 66 June 22nd. I am collecting and have been working. I’m close to $17,000 which I was told was the limit. Since I’m 66, can I make more?
Susan C.
Greetings. are funds received through social security benefits considered and to be included/calculated as “annual earnings”?
V.V.
Thank you for the question, Susan. When we are looking at the earnings limits for individuals receiving benefits and working, we count only wages made from their job or their net profit if self-employed. We include bonuses, commissions, and vacation pay. We don’t count pensions, annuities, investment income, interest, veterans, or other government, military retirement benefits or Social Security benefits. Visit our Retirement Planner: Getting Benefits While Working for more details. We hope this helps!
Juli
Good article but outdated (2017!). Can you update with new $ limits please?
V.V.
Hi Juli, thanks for using our blog. The amount you’re allowed to earn while receiving benefits depends on your age. If you attain full retirement age in 2021, the earnings limit is $50,520 but we only count earnings before the month you reach full retirement age. Beginning with the month you reach full retirement age, earnings no longer reduce your benefits, no matter how much you earn. If you’re under full retirement age for the entire year, then we deduct $1 from benefit payments for every $2 earned above the annual limit. For 2021, that limit is $18,960.
Visit our Retirement Planner: Getting Benefits While Working for more details.
ERVIN P.
how much can youi earn while retired and receiving s-s