Can You Claim Social Security While Working Full Time?
Dear Help Me Retire,
I am 63 years old and want to start collecting my Social Security retirement benefits. However, I am still working full-time.
I was told that if I make more than $23,400 per year, I cannot receive Social Security benefits. I was also told that I must wait until I am 67 if I am still working full time. Is this true?
I never thought I could not receive my Social Security just because I am working. I know others who collect benefits while working. Some even have to call and stop payments when they reach the earnings limit.
I understand that my benefits will be reduced since I have not reached my full retirement age (FRA). But I never thought my payments would be completely suspended.
My Social Security approval letter says I can receive benefits, but at the bottom, it states, “Payments suspended because you are still working.”
Dear suspended,
Yes, you can claim Social Security early, but there are rules if you are still working full time.
The earliest you can claim Social Security retirement benefits is age 62. However, claiming before your FRA will permanently reduce your monthly benefits.
There is also an income limit for those who claim early. In 2025, the limit is $23,400. If you make more than this amount, Social Security will reduce your benefits.
If you earn too much, your benefits may be completely suspended. Even though you have started your claim, you won’t actually receive any payments because of your income level.
This is why some people choose to wait until their FRA or reduce their work hours before claiming.
How Social Security reduces benefits for workers
If you claim early and earn more than $23,400, Social Security deducts $1 for every $2 you earn over the limit.
For example:
- If your Social Security benefit is $1,000 per month ($12,000 per year), and you earn $50,000 per year, you are $26,600 over the limit.
- Since the deduction is $1 for every $2, Social Security will deduct $13,300 from your benefits.
- Because this amount is more than your yearly benefit, your payments will be suspended.
If you turn your full retirement age in 2025, the income limit is $62,160, and the deduction changes to $1 for every $3 earned over the limit.
Is there a way out?
You have a few options to fix this situation:
- Withdraw your Social Security claim – You may be able to cancel your application. This must be done within 12 months of approval. If you withdraw, you will have to repay any benefits you received. This allows you to apply later and receive higher benefits.
- Reduce your work hours – If possible, you could lower your earnings below the annual limit so you can receive some Social Security payments.
- Wait Until full retirement age – Once you reach your FRA (67 for you), the income limits no longer apply. At that point, you will receive full benefits regardless of how much you earn. Plus, Social Security will recalculate your benefits and give you credit for months when your benefits were withheld.
What should you do next?
Call the Social Security Administration again or visit your local office. Ask about withdrawing your claim or how much your earnings will affect your benefits.
You can also check the official Social Security website for more information.
Understanding Social Security rules can be confusing, but knowing your options can help you make the best decision for your retirement.
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