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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Dorothy J.
I attained my full retirement age of 66, in 12/20. I took early retirement at age 62, but worked part time through 2019. Will my monthly benefit be re-calculated and, if so, when will I receive notification of the change? Thank you.
V.V.
Hi Dorothy, thank you for using our blog to ask your question. Each year we review the records for all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. This is an automatic process, and benefits are paid in December of the following year. For example, in December 2021, you should get an increase for your 2020 earnings if those earnings raised your benefit. The increase would be retroactive to January 2021.
Check out our Receiving Benefits While Working web page for more details.
Beverly S.
My husband will turn 65 in July 2021. He would like to take benefits starting in August. He also plans on working part-time for the next couple years.
Is it correct that he will not be penalized in 2021, but if he goes over the limit before he’s 66 and 4months he will be penalized in 2022?
Thanks for your response – this is so confusing.
V.V.
Hi Beverly, thanks for using our blog. You can get Social Security retirement or survivors benefits and work at the same time. However, there is a limit to how much you can earn and still receive full benefits. 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.
There is a special earnings limit rule for those that retire mid-year and have already earned more than the yearly earnings limit. You may find our Earnings Limit Calculator helpful.
Visit our Receiving Benefits While Working web page for more details.
Richard B.
In 2020 I lost my job due to downsizing, and decided to retire at age 63. But, I intend to hold off claiming social security benefits until full retirement age of 66.5. Until then, I will have 0 income for three years. Is there any retirement notification to SSA or IRS I should do now/before applying for social security benefits in 2023? My wife will continue to work until then/ 2023 comes.
Kathy L.
So if I retire and collect 1400.00 per month social security. Can I make an additional 18,000 per year ( estimate of amt allowed to earn for 2021) before they take any money back? Or is the 1400 per month (that I would be getting from SS)included as income and if so I would only be able to make about 1200.00 for that year in addition to my SS. Is that correct?
V.V.
Hi Kathy, thanks for using our blog. You can get Social Security retirement or survivors benefits and work at the same time. However, there is a limit to how much you can earn and still receive full benefits. 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 Receiving Benefits While Working web page for more details.
Renee' A.
Do the benefits you are receiving from Social Security get added to your earnings to figure how much gets deducted if you’re still working?
John L.
I started drawing Social Security benefits a year ago at age 70, but I’m still working. How do I calculate the amount that each additional quarter of work should add to my monthly check?
V.V.
Hi John, thank you for using our blog to ask your question. Each year we review the records for all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. This is an automatic process, and benefits are paid in December of the following year. For example, in December 2020, you should get an increase for your 2019 earnings if those earnings raised your benefit. The increase would be retroactive to January 2020.
Check out our Receiving Benefits While Working web page for more details.
kathy h.
I have heard that when you reach the age of 70
you can make as much as you want without penalties on my earning. How true is it.
K.T.
Hi Kathy, thanks for using our blog and for your question. The amount you’re allowed to earn while receiving benefits depends on your age. However, 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. 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.
Visit our Receiving Benefits While Working web page for more details.
Mike E.
I have heard that once I hit full retirement age (66 & 2months) I can collect my full retirement benefits and keep working with no limit on my earnings. Is this correct? Thank you.
S.D.
Thanks for your question, Mike. Starting with the month you reach full retirement age, you can get your retirement benefits with no limit on your earnings. If you will attain full retirement age in 2021, the limit on your earnings for the months before full retirement age is $50,520. We will withhold $1 in benefits for every $3 you earn above $50,520. Also, as long as you continue to work and receive benefits, we will check your record every year to see whether your additional earnings will increase your monthly benefit. If they do, we will send you a letter to notify you of your new benefit amount and pay you any increase you are due retroactive to January of the year after you earned the money. For more details, see our Frequently Asked Question and our Receiving Benefits While Working web page. We hope this helps.
Michele R.
I am 69 years old and receive Social Security retirement benefit. I also work part-time. Do I have to pay into Social Security again as a part-time employee?
V.V.
Hi Michele, thank you for using our blog to ask your question. Each year we review the records for all Social Security beneficiaries who work. If your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. This is an automatic process, and benefits are paid in December of the following year. For example, in December 2020, you should get an increase for your 2019 earnings if those earnings raised your benefit. The increase would be retroactive to January 2020.
Check out our Receiving Benefits While Working web page for more details.
Beverly K.
I reach full retirement age in 12/20. I plan to work until I am 67 in 12/21 can I receive back payments based on my earnings and does delayed retirements credit come into play?