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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Shirley A.
How much can you earn in 2021 if you are collecting SSA benefits before your normal retirement age with no benefit reduction?
Thank you.
S.D.
Hi, Shirley. Thanks for using our blog and for your question. As you know, 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 younger than 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.
For more information, including examples, check out our Receiving Benefits While Working web page. We hope this explanation is helpful.
Gary
My full retirement age will be February 2022.
I am leaving full time work at the end of next month.
Does the “special year ” plan only go into effect January 1st of 2022 or does it start 12 months before reaching FRA?
If while working part time the rest of 2021 and if I go over the 1580 per limit, how will my benefit be adjusted since the limit changes Jan. 2022?
S.D.
Hi, Gary. Thanks for using our blog and for your questions. As you know, there’s a limit on how much you can earn and still receive your full Social Security retirement benefits while working. Some people who file for benefits mid-year have already earned more than the yearly earnings limit amount. We have a special rule for this situation that lets us pay a full Social Security check for any whole month we consider you retired, regardless of your annual earnings. If you are younger than full retirement age for all of 2021 and receive Social Security benefits, you are considered retired in any month that your earnings are $1,580 or less and you did not perform substantial services in self-employment. For an example of how this works, please review our How Work Affects Your Benefits pamphlet.
We will adjust the amount of your Social Security benefits in 2021 based on what you told us you would earn this year. If you believe your earnings for 2021 will be different from what you originally told us, let us know right away. You’ll find the phone number of your local office with the Social Security Office Locator. If you don’t contact us with your new earnings figure, you could be overpaid or underpaid. Our call volume and wait times are higher than normal, so please be patient.
If you are working when you reach full retirement age in February 2022, you may keep all of your benefits, no matter how much you earn.
Becca
Hi. Do I have to have taxes done if I’m on social security and only worked 3 months in 2020?thank you
V.V.
Hi Becca. For taxation inquiries, please contact the Internal Revenue Service (IRS) at http://www.irs.gov or by calling their toll-free number at 1-800-829-1040.
Willie
If you are retired but still working should your job still take out medicare
V.V.
Hi Willie, thanks for using our blog. In most cases, if you don’t sign up for Medicare when you’re first eligible, you may have to pay a higher monthly premium which is why we advise people to apply for Medicare benefits as soon as they are eligible. However, if you were covered under a group health plan based on your or your spouse’s current employment, you may qualify for a Special Enrollment Period (SEP) that will let you sign up for Medicare Part B. You have an 8-month SEP to sign up for Part A and/or Part B that starts at one of these times (whichever happens first):
• The month after the employment ends
• The month after group health plan insurance based on current employment ends.
Usually, you don’t pay a late enrollment penalty if you sign up during a SEP.
If you don’t qualify for an SEP, you will have to wait for the General Enrollment Period (GEP) to sign up. The GEP lasts from January 1 through March 31. Coverage would begin July 1. Most people who sign up for Part B during the GEP will have a 10 percent increase in monthly premiums for each 12-month period they did not enroll, but were eligible.
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.
Rosamaria R.
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Angel B.
I retired in 2019. I have been offered the opportunity to work part-time in an interim position while the employer recruits and fills the vacant full-time position. This is not an employer or position that I have worked for before.
The employer has asked me to work as an independent contractor which means I will get a 1099 at the end of the year, and social security will not be withheld.
The plan is for me to work 10-15 hrs per week for a maximum of 16 weeks. I am aware of the yearly earnings limit, and exceeding that will not be a problem.
Here are my questions:
1. Am I considered self-employed as an independent contractor?
2. If I am considered self-employed, are my month work hours limited?
3. Should social security be withheld from my earnings?
4. If so, how is this done since I assume that socialsecurity will not be withheld from my payments from the employer?
Polly V.
What are the current annual earnings limits for 2021?
V.V.
Hi Polly, 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.
Peggie M.
I have been unable to open many of the links in your blog for that past day or two…they always time out. I got the age calculator to open but when I went back to check for a different age, it would not open. Are they working and the problem is at my end?
V.V.
Hi Peggie, thanks for using our blog. Sorry to hear that the links were not working. The site appears to be up and running. The full retirement age link is also working. Please try again. Thanks!
Randy T.
I’m still working after retirement. I am age 72, but my income is so low that I am “EXEMPT” from Income Tax Withholding. Should my employer still be deducting SS & Medicare tax from my pay?
Barbara
As a married couple both on SS, what is the maximum combined we can make ( SS and payroll) and not pay income tax? I read somewhere $32,000 is that right?
S.D.
Happy new year, Barbara, and thank you for using our blog. Some people do have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income in addition to your benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return). For information about taxation of benefits as well as how to have federal taxes withheld from your benefits, visit our Benefits Planner: Income Taxes And Your Social Security Benefits. We hope this is helpful!