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HOW MUCH CAN YOU WORK/EARN WHILE ON SOCIAL SECURITY RETIREMENT in 2025?

 

The following rules take effect January 1, 2025.

  • The Good News:   If you have reached full retirement age (FRA) and will be FRA for the entire year (2025) there is no limit on how much you can work/earn while on Social Security retirement (pension) benefits.  There are no penalties for working.
  • Earnings-Test Limit for Early Retirees: If you claim Social Security benefits before reaching full retirement age (FRA) -- age 67 for those born in 1960 or later -- you'll see the earnings-test limit increase to $23,400 in 2025. That's up from $22,320 in 2024. This means you can earn an extra $1,080 before the Social Security Administration starts withholding $1 from your benefits for every $2 you earn above the limit. Thus, if you earn twice the limit your entire Social Security pension will be forfeited.  Any benefits withheld due to the earnings test are not lost. You'll end up receiving higher monthly payments down the road because those benefits are returned to you.
  • Earnings-test limit for those reaching FRA in 2025: If you'll hit FRA in 2025 (but are not FRA for the entire year) the earnings-test limit is much higher. It jumps to $62,160. That's up from $59,520 in 2024. Beyond this point, $1 is withheld for every $3 you earn over the limit. This limit applies to individuals who are not yet Full Retirement Age but will become so during 2025.
IMPORTANT NOTE:  The earnings test does not apply to your resources, investments or worth.  It only applies to earned income from working and earning salary, wages, commissions, bonuses, etc.  It tests work-related income, not wealth. Also, this information applies only to Social Security pension/retirement benefits, not disability or SSI benefits.


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