What is the Income limit to avoid Losing your Social Security Benefits in 2025?

When a person begins to receive Social Security retirement benefits, the Social Security Administration (SSA) considers them retired, but they can continue to work. However, there is one essential consideration: if they report earnings that exceed the specified limitations, they may forfeit their Social Security payments. To receive the full benefits from Social Security, your record is reviewed regularly, just like everyone else’s Social Security beneficiary who reports their earnings for the previous year, so your benefit is recalculated, and any increases that may be due are paid retroactively to January of the year after you earned those amounts.

How are profits taken from earnings?

However, if you are younger than the full retirement age and earn more than the yearly income limit, the administration may reduce your benefit amount proportionally. According to the SSA, if you do not achieve full retirement age during the year, we subtract $1 from your benefit payments for every $2 you earn above the yearly maximum. For 2025, the cap is $23,400″. The SSA further states, “In the year you reach full retirement age, we will deduct $1 in benefits for every $3 you earn above a certain limit.” In 2025, the maximum earnings will be $62,160. 

It is advisable to utilize the Income Test Calculator:

It is critical to emphasize that beginning the month you reach full retirement age, your wages will no longer lower your benefits, regardless of how much you earn. The Social Security Administration will adjust your benefit amount to compensate for the months your benefits were decreased or withheld due to excess earnings. If you are eligible for retirement benefits this year and are still working, you may use the earnings test calculator on the SSA’s website to see how your income will influence your benefit payments.