What happens if I work while receiving Social Security?

It is possible to receive Social Security income while still working. However, it’s important to understand the impact this setup could have on your Social Security benefit.

Once you reach full retirement age, your benefits are not reduced, regardless of how much you earn from your work.

However, if you’re younger than the full retirement age and make more than the yearly earnings limit, Social Security will reduce your benefit by $1 for every $2 you earn above the annual limit. That limit is $18,960 for 2021.

It’s important to note that income such as pensions, annuities, interest, investments, and government pay are not included in the work earnings annual limit figure. That figure is reserved namely for employee wages and self-employment income.

Visit www.ssa.gov for more information about Social Security benefits. The site also has great tools to help you figure your full retirement age, as well as a retirement age calculator and retirement earnings test calculator (to find out how much your benefits are reduced by outside earnings).

​Updated 1/22/2021