If you’re planning to work while collecting Social Security benefits in 2025, you’ll want to know the income limits set by the Social Security Administration (SSA). Earning more than the allowed amount could temporarily reduce your benefits, but careful planning can help you maximize both your income and your monthly checks.
2025 Income Limits Explained
The income limits depend on your age and whether you’ve reached your Full Retirement Age (FRA), the age at which you’re eligible for full Social Security benefits.
- Below Full Retirement Age:
If you’re younger than your FRA in 2025, the income limit is $21,240 annually or about $1,770 per month. For every $2 you earn above this limit, the SSA will deduct $1 from your benefits. - Reaching Full Retirement Age in 2025:
If you hit your FRA in 2025, the income limit is higher at $56,520 annually, or about $4,710 per month. In this case, $1 is deducted for every $3 you earn above the limit, but this only applies to earnings before your birthday month. - At or Beyond Full Retirement Age:
Once you reach your FRA, there’s no limit to how much you can earn. You’ll receive your full Social Security benefits regardless of your income.
What Counts as Earnings?
The SSA considers wages from employment and net earnings from self-employment when calculating whether you exceed the income limit. However, non-earned income, such as:
- Pensions
- Annuities
- Investment Income
- Interest from savings accounts
What Happens If You Exceed the Limit?
If your earnings exceed the limit, the SSA will temporarily reduce your benefits. But don’t worry—the money isn’t lost forever. After you reach your Full Retirement Age, the SSA recalculates your benefits and adjusts your monthly payment to account for the months when benefits were withheld.
Tips to Avoid Losing Benefits
- Track Your Income: Monitor your earnings throughout the year to ensure you stay within the limits.
- Know Your FRA: Your Full Retirement Age depends on your birth year. For most people born after 1960, the FRA is 67.
- Seek Professional Advice: A financial advisor can help you manage your income and benefits to avoid unnecessary reductions.
Why This Matters
Social Security benefits are a vital part of retirement income for millions of Americans. Understanding the rules around income limits can help you avoid surprises and plan effectively for your financial future.