You absolutely can. But—and it's a big "but"—how much you keep depends entirely on your age and how much you're pulling in from that side hustle or 9-to-5. Most people think the Social Security Administration (SSA) just cuts you off the moment you pick up a paycheck. Honestly? That's not how it works. It’s more of a math game where the rules change the closer you get to your "magic" number: Full Retirement Age (FRA).
If you’re over your FRA, the handcuffs are off. You can make a million bucks a year and the SSA won't touch your monthly benefit. If you’re younger than that, things get a little sticky.
The Reality of Working While Receiving Benefits
The SSA uses something called the Retirement Earnings Test. It sounds like a high school exam, but it’s basically just a threshold. For 2024, if you are under your Full Retirement Age for the entire year, the limit is $22,320. If you earn more than that, the government starts clawing back money. They take $1 for every $2 you earn above that limit. It feels like a penalty. In reality, it’s more like a forced savings account because they don’t just keep that money forever; they recalculate your benefit later to give it back once you hit FRA.
It’s a weirdly complex system.
Let’s say you’re 63. You decide to consult part-time and make $30,000. You’ve gone over the limit by $7,680. The SSA is going to withhold $3,840 of your benefits. If your monthly check is $1,500, you’re looking at losing a few months of payments entirely. It catches people off guard every single year.
The "Grace Year" Loophole
There’s this thing called the monthly earnings test. It usually only applies to the first year you retire. This is a lifesaver for people who retire in June but already made $50,000 in the first half of the year. Under the normal annual rule, they’d get zero benefits for the rest of the year. But the SSA lets you use a monthly limit—$1,860 for 2024—for that first transition year. If you stay under that monthly cap, you get your full check regardless of what you made before you filed.
What Counts as "Earnings" (And What Doesn't)
People stress about their 401(k) withdrawals or their pension. Relax. When we talk about can I work while getting social security, we are talking about "earned income." This means wages from a job or net earnings from self-employment.
The SSA doesn't care about:
- Pensions
- Annuities
- Investment income or dividends
- Interest
- Capital gains
- IRA or 401(k) distributions
- Inheritances
Basically, if you didn't "sweat" for it this year, it probably doesn't count toward the limit. However, if you're self-employed, the SSA looks at "substantial services." If you’re running a business from your laptop for 50 hours a month, they’re going to consider that work, even if you’re trying to manipulate your "draw" to stay under the limit. They aren't dumb.
The Mid-Year Birthday Bonus
The year you actually hit your Full Retirement Age, the rules loosen up significantly. The limit jumps way up. For 2024, it’s $59,520. And the "penalty" drops, too. Instead of losing $1 for every $2, they only take $1 for every $3 you earn above the limit.
The best part? They only count the money you make before the month you hit your birthday.
Imagine your FRA is 67 and your birthday is in October. You can make $50,000 between January and September. As long as you don't cross that $59,520 threshold before October 1st, you’re golden. Starting October 1st, you can win the lottery or become a CEO—it doesn't matter. You keep every cent of your Social Security.
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Is It Even Worth Working?
This is where the nuance comes in. You have to look at the tax bite. Social Security benefits themselves can become taxable if your "combined income" (adjusted gross income + untaxed interest + half of your Social Security) exceeds certain levels.
For a single person, if that total is over $25,000, you might pay taxes on up to 50% of your benefits. If it's over $34,000, you could pay on up to 85%. So, you’re potentially losing money to the earnings test and paying more in income tax. It’s a double whammy.
But don't panic. Working longer often means a higher benefit later. When the SSA withholds your checks now because you earned too much, they credit those months back to you when you hit FRA. Your monthly check actually goes up to compensate for the "lost" money.
Special Rules for Disability (SSDI)
If you’re on Social Security Disability Insurance, the conversation about working while getting social security is totally different. You don't have an "earnings test" in the same way; you have "Substantial Gainful Activity" (SGA).
In 2024, if you make more than $1,550 a month ($2,590 if you’re blind), the SSA generally considers you "not disabled" anymore. They do offer a Trial Work Period (TWP). This is a nine-month safety net where you can earn as much as you want to see if you can handle a job. If you can't, your benefits stay put. If you can, they eventually phase out. It’s a "test drive" for your career.
Reporting Your Income
Don't wait for the SSA to find out you're working through your W-2 at the end of the year. If you know you're going to go over the limit, tell them. They’ll adjust your payments. If you don't, you’ll end up with an "overpayment notice" in a year or two. That is a terrifying letter to get. It basically says, "Hey, we gave you $8,000 too much, and we're taking 100% of your checks until it's paid back."
You can avoid that headache with a simple phone call or a trip to the local office.
Actionable Next Steps
- Verify your Full Retirement Age. It’s not 65 anymore for most people; if you were born in 1960 or later, it's 67.
- Do a "Tax Mock-up." Before taking a job, check if the extra income pushes you into a bracket where 85% of your Social Security becomes taxable.
- Track your gross, not net. The SSA looks at your total pay before taxes and health insurance are taken out.
- Use the SSA Retirement Earnings Test Calculator. It’s a free tool on their site that does the $1-for-$2 math for you so there are no surprises.
- Report changes immediately. If you get a raise or decide to work more hours, notify the SSA to prevent an overpayment situation.
- Consider the "Suspension" Strategy. If you've already hit FRA but want to keep working, you can actually suspend your benefits until age 70 to earn delayed retirement credits, which increases your check by 8% for every year you wait.
Working while receiving benefits isn't a binary "yes or no" choice. It’s a sliding scale. For many, the extra income and social connection of a job far outweigh the temporary withholding of some benefits. Just make sure you're doing the math on the front end so the IRS doesn't end up being the only one winning.