Working while collecting Social Security can be a bit complex, but it’s definitely possible. Here’s what you need to know:
### Can You Work and Collect Social Security?
Yes, you can work and collect Social Security benefits at the same time. However, if you haven’t reached your full retirement age, there are some rules to consider. Your full retirement age depends on when you were born. For example, if you were born in 1960 or later, your full retirement age is 67.
### What Happens If You Work Before Full Retirement Age?
If you start collecting Social Security benefits before your full retirement age and you’re still working, your benefits might be reduced temporarily. For 2025, if you earn more than $23,400, the Social Security Administration (SSA) will withhold $1 from your benefits for every $2 you earn above that limit. This doesn’t mean you lose that money forever; it’s just withheld until you reach your full retirement age.
### What Happens When You Reach Full Retirement Age?
Once you reach your full retirement age, your benefits are no longer reduced, no matter how much you earn. The SSA will recalculate your benefits to include the amounts that were withheld earlier, which can result in higher monthly payments.
### How Does Working Affect Your Benefits Long-Term?
Working while collecting Social Security can actually increase your benefits over time. If you earn more in a year than in any of the 35 years used to calculate your initial benefits, those higher earnings will be factored into your benefit amount, potentially increasing it.
### Applying for Benefits
If you’re ready to apply for Social Security retirement benefits, you can do so online by creating a My Social Security account. Keep in mind that benefits are paid one month in arrears, so if you start receiving benefits in March, you’ll be paid for February.
### Delays in Processing Applications
Currently, there are some delays in processing new Social Security applications. If you’ve applied, it might take a bit longer than usual to start receiving your benefits. However, Social Security continues to process applications even during government shutdowns.
In summary, working while collecting Social Security is possible, but it involves some temporary reductions if you’re below your full retirement age. Once you reach that age, your benefits can increase, and working can even boost your long-term benefits.
