How Much Can I Make on Social Security?

In 2024, the average monthly Social Security retirement benefit will be an estimated $1,907. While that regular monthly income helps, it's usually not enough to cover living expenses. That's one reason many people are working longer. Of course, some people simply enjoy working and want to continue their careers—or do something else that keeps them in the work world—during retirement.

Whatever your motivation, you can collect Social Security benefits if you continue to work and earn income. But if you make more than a certain amount and haven't reached your full retirement age, your benefits will temporarily be smaller. Don't worry, though: they won't be lost forever. After you reach your full retirement age, the Social Security Administration (SSA) will recalculate your monthly benefits and increase them to account for the benefits that it withheld earlier.

"The biggest thing to remember if you are working is to notify the Social Security Administration if you're going to earn wages in excess of the earnings threshold," says Matt Ahrens, a partner and chief investment officer at MarksNelson.

Otherwise, he notes, "They will not be notified of your earnings until you file your taxes the following year. And if you were receiving excess benefits, you can be fined, forced to pay back the excess, or receive lower future benefits."

Here's a rundown of how earned income can reduce your Social Security benefits.

How Social Security Benefits Work

For some, qualifying for Social Security isn't that difficult. Over the course of your working life, you need 40 credits to be eligible for retirement benefits, which is equal to 10 years of work, as defined by the SSA. In 2024, you get one credit for every $1,730 of earnings, up to a maximum of four credits per year.

Social Security calculates your benefit amount based on your earnings over the years, whether you were self-employed or worked for an employer. The more money you earned, the more you paid into Social Security—and the higher your future benefits—up to certain limits. The math is much more complicated than this sounds, but that's basically how it works.

Working While Receiving Social Security Benefits

If you work, the money you bring home can affect your Social Security benefits—but the specifics depend on your age and how much you earn. Remember that although your full retirement age might be 67, you can start receiving benefits at 62, even if you're still working.

But for the 2024 tax year, if you start receiving benefits before your full retirement age, you can only earn up to $22,320 ($1,860 per month) and still get your full benefits. Once you earn more than that limit, the SSA deducts $1 from your benefits for every $2 you earn.

In the year you reach your full retirement age, though, these numbers change. If you earn more than $59,520 ($4,960 per month) for the 2024 tax year, the SSA deducts $1 for every $3 you earn—but only during the months before you reach your full retirement age.

Once you reach your full retirement age, you can earn any amount of money, and the SSA won't reduce your benefits.

Example of Working While Receiving Social Security

Consider a 62-year-old single taxpayer who receives a monthly Social Security retirement benefit. They began working part-time for a local business, where they earn $25,000 per year.

Because their 2024 income exceeds the earnings threshold by $2,680 ($25,000 - $22,320), the SSA will reduce their benefits by $1,340 ($1 for every $2 earned or $2,680/$2).

Working Outside of the United States

If you retire and work outside the United States, the rules are different. If you are younger than full retirement age, Social Security will withhold your benefits for every month you work more than 45 hours for an employer (or as a self-employed worker) in a job that's not subject to U.S. Social Security taxes. That applies regardless of how much money you earn. These rules can get complicated, so you'll want to contact Social Security for advice on your particular situation.

The Bottom Line

If you paid into Social Security long enough to earn 40 credits and have reached your full retirement age, you can make as much money as you like without having your Social Security benefits reduced. If you start collecting benefits earlier and earn over a certain amount, a portion of your benefits will be withheld. But once you reach your full retirement age, the SSA will recalculate your benefit to make up for the money it withheld earlier.