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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Kirsti W.
Is social security taxable? What about if you are still working (after full retirement age) does the social security get added to your taxable income?
V.V.
Hi Kirsti, thanks for using our blog. For information about taxation of benefits, visit our Income Taxes And Your Social Security Benefits web page. The annual earnings limits and taxation of benefits are two different things.
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.
Karen L.
I worked Jan – March of 2020 and then started drawing my Social Security as well as my retirement benefits from my work. Will I owe taxes on my retirement? Will my social security be reduced because I worked for the first three months? I did not work after retirement.
S.D.
Hi, Karen. Thanks for your questions. Check out our Income Taxes and Your Social Security Benefits for details related to taxation of benefits. If you have to pay taxes on your Social Security benefits, you can choose to have federal taxes withheld from your benefits.
Your Social Security benefit should not be reduced because of your work in the first three months of 2020. That’s because of a special earnings limit rule for those who retire mid-year and have already earned more than the yearly earnings limit. The special rule lets us pay a Social Security check for any whole month your earnings are $1,580 or less and you did not perform substantial services in self-employment, regardless of your yearly earnings. If you decide to work in the future, you may want to check out our Receiving Benefits While Working webpage.
We hope this helps!
Doreen T.
Hi, I am less than my full retirement age but qualify for Widow’s Benefits from my ex-spouse.
I am unemployed but hope to get working soon.
If I do get Survivor’s Benefits but end up exceeding the annual income limit in a particular year, what happens once the difference is ‘repaid’ to SSA?
Do I have to file a new application for Survivor Benefits or does the SSA automatically restart my Survivor Benefit payments once the overage has been zeroed out?
Thank you.
S.D.
Hi, Doreen. Thanks for using our blog and for your questions. You can get Social Security 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’re younger than full retirement age for the entire year, we will ask you how much you intend to earn. Then we deduct $1 from benefit payments for every $2 earned above the annual limit. For 2021, that limit is $18,960. If you tell us you are going to earn more than that, we will temporarily suspend your monthly check because of your work. You will not need to reapply for benefits.
If you reach 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. Visit our Receiving Benefits While Working webpage for more details. We hope this information is useful.
Paula
Hi, I will be turning 65 in May. I plan on collecting my SS and continue to work part time. How much can I earn between May and the end of the year before they will start withholding SS?
Thank you,
Paula
V.V.
Hi Paula, thanks for using our blog. If you are 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. The special rule lets us pay a Social Security check for any whole month your earnings are $1,580 or less and you did not perform substantial services in self-employment, regardless of your yearly earnings.
The Getting Benefits While Working web page provides more details.
You may also find our Retirement Earnings Test Calculator helpful.
Marc
My wife did not work at all. will she get any social security pension. she did not work because of her illness. I worked for 40 years
V.V.
Hi Marc, thanks for using our blog. Your wife may be eligible for spouse’s benefits if she is at least 62 years of age and you are receiving retirement or disability benefits. Check out our Benefits For Your Spouse web page for additional details.
Michael R.
Can I work and collect my ssa? If so do I have to report my income? Is there a limit to what I make?
V.V.
Hi Michael, 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.
KISABURO P.
My part of incomes were paid by county for 11 years and I was involved in my Social Security Benefits reductions by WEP (Windfall Elimination Provision).
I would like to know how my “Taxed Social Security Earninmgs” were calculated each year. Please let me know which articles or documents I should study to understand about this subject.
V.V.
Hi Kisaburo, thanks for using our blog. A non-covered pension, a pension based on work that is not covered by Social Security (for example, Federal civil service and some State or local government agencies such as police officers and some teachers), may cause the amount of your Social Security benefit to be reduced. Your benefit can be reduced based on one of two provisions: The Government Pension Offset and the Windfall Elimination Provision. See our Information for Government Employees web page for details.
Karen A.
If you are working after the age of 70 is there still a limit on what you can earn but still collect full SS benefits? It was my understanding that after 70 you could earn any amount working and keep your full SS benefits
V.V.
Hi Karen, thanks for using our blog. Beginning with the month you reached full retirement age, earnings no longer reduce your benefits, no matter how much you earn. Plus, 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 automatically 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.
Check out our Receiving Benefits While Working web page for more details.
Regina J.
I have been working part time while receiving Social Security. Do I have to notify Social Security when I quit my part time job?
V.V.
Hi Regina, thanks for using our blog. Please notify us promptly whenever a change occurs that could affect your benefits. You should tell us if you take a job or become self-employed, no matter how little you earn. Please let us know how many hours you expect to work, and when your work starts or stops. Check out our publication “What You Need to Know When You Get Social Security Disability Benefits” for more details.
To report this, call us at 1-800-772-1213 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.
THOMAS Q.
It is my undersatanding that if you worked over 30 years putting in to social security you can start collecting without any benefit reduction?
S.D.
Hi, Thomas, and thank you for using our blog. Your question appears to indicate you receive or expect to receive a pension from work where you did not pay into Social Security. If you have 30 or more years of substantial Social Security earnings, we don’t reduce the standard 90 percent in our benefit formula. However, if you have 21-29 years of substantial Social Security earnings, we reduce the 90 percent factor to between 45 and 85 percent.
Each year that you work and pay into the Social Security system may result in an adjustment to the formula depending on your total wages for the year. You’ll find a table that lists the amount of substantial earnings for each year at the bottom of the second page of the Windfall Elimination Provision fact sheet.
For more information, check out our Windfall Elimination Provision web page. It includes a link to an online WEP calculator that can tell you how your Social Security benefits may be affected by your non-covered government pension. You’ll need your Social Security Statement from your my Social Security account. We hope this explanation helps.