Can You Work And Collect Social Security? 

It is possible to start collecting Social Security once you turn 62, which is a great source of guaranteed income in retirement. However, at age 62, you may not be ready to give up your career altogether. Is it possible to work and collect Social Security at the same time? The short answer is yes, but your earnings can affect how much you receive.   

Can You Work And Collect Social Security? 

The sooner you reach retirement age, the more you’ll be able to save and take advantage of catch-up contributions. Once you’re 62, you can begin collecting Social Security. Even after retiring, you could do part-time work or consulting work to make extra money and stay busy. 

In June 2025, nearly 90% of people 65 and older were receiving Social Security benefits-and more than a quarter of folks 65 to 74 were still working in 2022. 

While there is no rule against working and collecting Social Security at the same time, your benefit amount will decrease if you earn more than a certain amount.  

If I continue to work, will my Social Security benefit increase? 

Your Social Security benefit depends on a variety of factors, including your income during your working years. The Social Security Administration (SSA) reviews your earnings every year no matter how old you are, and could recalculate your benefit if necessary if you’ve already received payments.  

Also check: How To Increase Social Security Disability Payments?

Can I earn enough money to collect Social Security in 2025? 

You can earn an income and continue to receive Social Security benefits, but your benefit amount may be reduced based on your income. The Social Security Administration sets an income limit, and any amount over that limit impacts your benefit amount.  

In 2025, the following income limits will apply:  

• A person under full retirement age can earn up to $22,320 before their benefits are affected. For every $2 earned above that amount, SSA deducts $1 from your benefits.   
• Upon reaching full retirement age, the income limit increases to $59,520. Earnings over that amount are deducted from your monthly benefit at a rate of $1 for every $3 earnedge.  
• Your benefit payments won’t be affected once you reach full retirement age. 

To see how this works, let’s look at some examples:  

Suppose you make $60,000 in 2025 and are eligible for a monthly Social Security payment of $1,976, which corresponds to the average payment in January 2025 for retired workers. As a result, $37,680 of your income would exceed the income limit, reducing your benefit by $18,840, giving you a total benefit of $4,044. 

Instead of earning $60,000 in 2025, let’s say you’re reaching full retirement age this year. During the months leading up to your birthday, only $480 will be above the limit, resulting in a much smaller reduction to your benefit payment-and only during those months. If you had waited just one year before taking Social Security, you would have made much more sense.  

Working while receiving Social Security and Disability Insurance

You may be able to work while receiving Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). There is, however, a possibility that the amount of benefits you receive will be reduced depending on how much money you earn from your job. 

SSI will no longer be available to non-blind individuals earning more than $1,620 per month starting in 2025. However, states will determine whether you are eligible for SSI while working.

Work While Disabled: How We Can Help from the Social Security Administration explains:

• Learn about SSI and SSDI income limits and work expenses
• What information you need to report if you change your income or work as an SSI or SSDI recipient
• Ticket to Work and other employment support programs for SSI and SSDI recipients

While working, you can receive Medicaid

You can find the following information on Social Security’s Continued Medicaid Eligibility page:

• Requirements for continuing Medicaid coverage while working
• Your state’s earnings threshold. In order to qualify for Medicaid, you must earn at least this amount.

Is there a limit on income? 

In calculating your income, the SSA only considers wages, which excludes:  

• Earnings from investments. 
• Income from unemployment. 
• Pensions and annuities. 
• The income of a spouse. 

When I reach full retirement age, what happens? 

Upon reaching full retirement age, the income threshold disappears, and your benefit is not reduced based on your income.  

If you’re still working, is Social Security taxable? 

The IRS considers both job-related and non-job-related income when determining whether or not you have to pay taxes on your Social Security benefit.  

The combined income that you will owe taxes depends on the amount of your Social Security benefits and nontaxable interest. Tax may apply to your benefit payment if your combined income falls below a certain threshold.  

While the calculation can be complicated, the most important thing to remember is that your benefits will never exceed 85 percent.   

As a general overview, here are the numbers: 

• Individual tax filers: Benefits may be taxed up to 50 percent if your combined income is between $25,000 and $34,000. Depending on your income, up to 85 percent of your benefits may be taxable. 
• Couples filing jointly: You may have to pay taxes on up to half of your benefits if your combined income is $32,000 or more. Over $44,000, you may be taxed on up to 85 percent of your benefits.  

When collecting Social Security while working, what are the pros and cons? 

The timing of when to start collecting Social Security-and when to stop working-is truly a matter of personal choice. As you weigh these options, consider the following:  

Working while collecting Social Security has its advantages  

Among the benefits of working and collecting Social Security are:  

Income from it would be greatly needed. 

In the event of a change in lifestyle, a financial emergency, or unexpected medical costs, Social Security benefits may be able to help.  

You may be able to achieve your financial goals with it. 

Having a monthly Social Security payment can free up cash for other important goals, including investing, traveling, starting a side business, or funding your legacy. 

When you reach full retirement age, there is no penalty.

Your Social Security benefit payment amount won’t be affected by money you earn from a job once you reach full retirement age. As a result, income from Social Security can be used to help you reach financial goals, such as a full retirement, more quickly.  

Working while collecting Social Security has its cons  

In consideration of collecting Social Security while working, here are some downsides to consider:  

Taking Social Security before full retirement age will result in a smaller lifetime benefit.  

Social Security benefits can be reduced by up to 30% if you start taking them at age 62, but they will increase 8 percent each year you delay taking them until you’re 70 if you wait until then. You may see a significant difference in the amount of your retirement benefits, as well as in your retirement income. 

There is a possibility that working could reduce your Social Security benefit.  

Earning more than the allowed limit may reduce your benefit if you are under the full retirement age. This may result in a substantial reduction in your benefit. (You may even lose your benefit entirely.)  

There is a possibility that you will owe more taxes. 

As your earnings increase, your tax bill could increase, as well as your Social Security benefit, depending on how much income you receive overall.  

What is the best time to start collecting Social Security? 

How much you have saved, what other financial pieces you have in place, and what your retirement plans are will determine when you claim Social Security and when you stop working. Making these decisions will require you to ask yourself questions such as “do you support others or only yourself?”.