Planning to work while collecting Social Security benefits in 2025? It’s essential to understand how much you can earn without affecting your payments. Let’s break it down into simple terms so you can avoid surprises.
Income Limits for Those Under Full Retirement Age
If you’re below your Full Retirement Age (FRA) in 2025, earning too much could temporarily reduce your Social Security checks. The earnings limit for 2025 is $23,400, up from $22,320 in 2024. For every $2 you earn above this limit, $1 is withheld from your benefits.
But don’t worry these withheld benefits aren’t gone forever! Once you reach your FRA, your payments are recalculated to give you credit for any withheld months.
Higher Limits When You’re Nearing FRA
In the year you reach your FRA, you get a bit more flexibility. The income limit for this year is $62,160, up from $59,520 in 2024. For every $3 you earn above this higher threshold, $1 is deducted but only for earnings before the month you hit FRA. After that, you can earn as much as you want without losing a cent of your benefits.
What Counts as Earnings?
The SSA considers wages and net self-employment income when determining if you’ve exceeded the limit. This includes bonuses, commissions, and even unused vacation pay. However, investment income, pensions, or veterans’ benefits are excluded from this calculation.
How to Make the Most of Your Benefits
If you’re planning to keep working while collecting Social Security, make sure to stay within the earnings limits to avoid deductions. Consulting a financial advisor or speaking with the SSA can help you navigate your options and plan wisely.
By understanding these updated rules, you can maximize your income while protecting your Social Security benefits in 2025.
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