How Much Can You Earn While on Social Security?

People younger than full retirement age (67 for many) who are receiving Social Security retirement benefits can earn up to a certain amount from work before the Social Security Administration reduces their benefits. The limit is $21,240 in 2023 and $22,320 in 2024. There is no earnings cap after hitting full retirement age.

If this is the year you hit full retirement age, however, the rules are a little different. Also, Social Security Disability Income (SSDI) and Supplemental Security Income (SSI) payments have their own rules.

» MORE: Estimate your retirement benefit

Whether the Social Security Administration penalizes you for working while you’re receiving Social Security retirement benefits depends on your age and how much you earn. Here are some key things to know about how the penalties work.

If you’re younger than full retirement age during the whole year

Earnings cap: The limit is $21,240 in 2023 and $22,320 in 2024.

The penalty: 50% of anything you earn over the cap.

How it works: The Social Security Administration deducts $1 from your Social Security check for every $2 you earn above $21,240 (this is the income limit for 2023). For example, $22,240 of earnings would generate a $500 reduction in a person’s Social Security retirement benefit for the year.

• However, you can avoid the penalty and still get full Social Security checks if for the remainder of the year after you retire you earn less than $1,770 a month and don’t spend more than 45 hours a month on a small business (15 hours if it’s a “highly skilled occupation”).

• After that first year, you’re subject to the annual limit until you hit full retirement age.

» MORE: Learn more about Social Security’s first-year-of-retirement rule

If this is the year you will hit full retirement age

Earnings cap: In 2023 the income limit in the year a person reaches full retirement age is $56,520; in 2024 that number is $59,520.

The penalty: 33% of anything over the cap.

How it works: The Social Security Administration deducts $1 from your Social Security check for every $3 you earn in the months before your birthday above the income limit.

• This special rule exists because sometimes people who retire in the middle of the year have already earned more than the limit.

• However, you can avoid a penalty and still get full Social Security checks for the remainder of the year after you retire you earn less than $4,710 a month and don’t spend more than 45 hours a month on a small business (15 hours if it’s a “highly skilled occupation”).

The year after you hit full retirement age

After the year in which you hit full retirement age, there is no limit on what you can earn while collecting Social Security retirement benefits.

» MORE: See if working means you’ll pay more for Medicare too

The Social Security Administration considers these things as income when determining whether you exceeded the income limit.

• Wages earned by working for someone else. 

• Net earnings from self-employment. 

• Contributions you make to a pension or retirement plan if the contribution is included in your gross wages.

These things don’t count as income when determining whether you exceeded the income limit:

• Other government benefits.

• Investment earnings.

• Interest.

• Pensions.

• Annuities.

• Capital gains.

» MORE: Why you might get two Social Security checks in the same month

Here are three things to keep in mind if you’re thinking about working while receiving Social Security retirement benefits.

Know what your full retirement age is 

This is the age at which you are entitled to receive 100% of your Social Security retirement benefit. If you elect to start receiving Social Security retirement benefits before you reach full retirement age, the Social Security Administration can permanently reduce your monthly check by up to 30%.

Your full retirement age is also the age at which there’s no cap on what you can earn while receiving benefits.

The Social Security Administration determines your full retirement age based on when you were born. For many (but not all) people, full retirement age is 67.

Understand how you pay the penalties

If you incur a penalty for earning too much, the Social Security Administration gets its payment by withholding your benefits.

• The Social Security Administration withholds entire checks (no partial reductions) and refunds any overages the subsequent year. 

• For example, if you retired early and your retirement benefit is normally $1,200 per month but you incurred a $500 penalty, the Social Security Administration may withhold your entire January 2024 payment of $1,200 to recoup the $500 penalty from 2023. In January 2025, it would refund the extra $700 it took.

» MORE: See how long your retirement savings might last with our retirement calculator

You may get some back

Your benefit may increase later if you incur penalties before you reach full retirement age.