If you collect Social Security retirement benefits and also want to work, the rules in 2025 set clear limits on how much you can earn without having part of your benefit withheld.
These rules depend on your age relative to your full retirement age.
The Social Security Administration (SSA) uses an earnings test that reduces benefits temporarily if your earnings exceed certain thresholds.
What is the 2025 earnings limit if I’m younger than full retirement age?
If you are younger than your full retirement age for all of 2025, the earnings limit is $23,400 for the year.
For every $2 you earn above that limit, SSA will withhold $1 of your Social Security benefit.
Only earnings from wages or net self-employment count toward this limit; pensions, investment income, and other sources are not counted.
What is the 2025 earnings limit in the year I reach full retirement age?
If you reach full retirement age in 2025, a higher limit applies up until the month you reach that age. That limit is $62,160.
In that period, SSA will withhold $1 in benefits for every $3 you earn above the limit, but only earnings in months before you reach full retirement age count.
When can I earn unlimited income without benefit reduction?
Once you are at full retirement age or older, there is no earnings limit.
You can work and earn any amount without having your Social Security retirement benefit reduced.
Any benefits that were withheld earlier due to earnings will be credited back via an increase in your monthly benefit once you reach full retirement age.
How are earnings defined for the Social Security earnings test?
For wage earners, earnings count as wages reported on your W-2.
For people with self-employment income, SSA uses net earnings from self-employment (after business expenses) and considers substantial services.
Substantial services generally mean more than 45 hours in a business per month, or 15 to 45 hours in a skilled occupation.
What happens in a year I retire mid-year?
If you retire before year’s end, there is a special rule for 2025.
If you do not expect to perform substantial services or exceed monthly thresholds in the remaining months, SSA may still allow full benefit payments under the “monthly rule,” even if your yearly earnings exceed the $23,400 limit.
This rule applies only in your first year of retirement.
Will withheld benefits ever be returned?
Yes. If benefits are reduced because of excess earnings, SSA recalculates your benefit at full retirement age to give credit for months with withheld benefits.
Thus, those withheld amounts are not lost permanently.
How do these 2025 rules compare to previous years?
The 2025 under-full-retirement-age limit rose from $22,320 in 2024 to $23,400.
Similarly, the limit for those reaching full retirement age went from $59,520 in 2024 to $62,160 in 2025.
These increases reflect adjustments tied to national wage growth and inflation.
