Americans can still collect their all of their Social Security benefits whilst also working full-time as citizens try to figure out how to manage the rising costs of living and turbulent economic picture, but there is a catch.
Those claiming must have reached Full Retirement Age in order to retain 100% of their benefits alongside working full time too.
If you are under the age assigned to you then your earnings are capped at $22,320 per annum.
However, if you will hit the FRA within the year, then the limit on the earnings in the months prior is $59,520. Once you hit the FRA, then there is no limit on how much you can earn and still receive Social Security benefits.
Here’s how it’s broken down:
If you are under the full retirement age for the entire year then you are allowed to claim $800 per month maximum in benefits and you can also work and earn a maximum of $22,320 before reductions start to apply.
After surpassing the limit, your Social Security benefits are reduced by one dollar for every two that you earn.
So if you earn a salary of $32,320 ($10,000 than the limit), you would see a reduction of $5000 over the year.
If you reach the FRA in August 2025 then you can claim $800 per month for the entire year but still face the reduction as outlined below for the first eight months of 2025.
Then once you hit the FRA, you can earn an unlimited amount and still claim Social Security.
What does the Social Security Administration count as earnings?
Of course, ‘earnings’ can be a very loose term to use in the context of claiming benefits and can vary from each different benefit as well as between different agencies such as the Social Security Administration or Internal Revenue Service.
As far as the SSA is concerned for Social Security, ‘earnings’ are simply wages you make from your job or your net earnings if you’re self-employed.
Pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits are excluded.