Your Hours Don't Matter, Your Earnings Do
When considering how many hours can you work if you retire at 64?, the most important takeaway is that the Social Security Administration (SSA) does not place any restrictions on the number of hours you can work. Instead, it enforces an annual earnings limit, also known as the Retirement Earnings Test, for those who begin receiving benefits before their full retirement age (FRA). At age 64, you are below the FRA, which is 67 for those born in 1960 or later, so you are subject to this limit. Exceeding this income threshold will result in a temporary reduction of your Social Security benefits.
The Social Security Earnings Limit at Age 64
For those who are under their full retirement age for the entire year, the annual earnings limit applies. For 2025, this limit is $23,400. If you earn more than this amount, the SSA will withhold $1 in benefits for every $2 you earn over the limit. It is crucial to remember that this rule applies only to earned income, which includes wages from a job or net earnings from self-employment. Other sources of income, such as investments, pensions, or annuities, do not count toward this limit.
The Year You Reach Full Retirement Age
The rules change in the year you reach your full retirement age. In 2025, for those reaching FRA, a different, more generous earnings limit applies for the months before the month of your birthday. The limit for 2025 is $62,160. In this case, the SSA will withhold $1 in benefits for every $3 you earn over this higher threshold. However, beginning with the month you reach your FRA, there is no longer any earnings limit, and your benefits will no longer be affected by your income, no matter how much you earn.
Understanding the Special Monthly Rule
For individuals who retire mid-year after having earned more than the annual limit, a special monthly earnings test can be applied, but only for the first year of retirement. This rule can help avoid a complete loss of benefits for the rest of the year. For 2025, if you are under your FRA, you are considered retired for any month that your earnings are $1,950 or less. This allows you to receive a full Social Security check for the months you meet this monthly earnings threshold, even if your total yearly earnings exceed the annual limit. This special rule is a one-time opportunity and is only used if it benefits you.
Benefits Withheld Are Not Lost Forever
One of the most reassuring aspects of the earnings test is that any benefits withheld are not permanently forfeited. Once you reach your full retirement age, the SSA will recalculate your monthly benefit to give you credit for the months in which your benefits were reduced or withheld due to excess earnings. This results in a higher monthly benefit amount for the rest of your life. The SSA automatically adjusts your benefits to account for this, effectively giving you back the money over time through higher payments.
The Importance of a Complete Earnings Record
Continuing to work, even while collecting early benefits, can be advantageous in another way. Your Social Security benefit is based on your highest 35 years of earnings. If you work at age 64 and earn a higher salary than one of the years in your original calculation, the SSA will replace one of your lower-earning years with your new, higher earning year. This process automatically happens each year and can lead to a higher overall monthly benefit.
The Tax Impact of Working While on Social Security
Another factor to consider is the potential tax implications of working and collecting Social Security benefits. If your combined income (adjusted gross income, plus non-taxable interest, plus half of your Social Security benefits) is above a certain threshold, you may have to pay federal income tax on a portion of your Social Security benefits. In 2025, if you file as an individual, and your combined income is more than $25,000, some of your benefits may be taxable. If filing jointly, the limit is $32,000.
A Comparison of Earnings Test Rules (2025)
| Feature | Under Full Retirement Age (All Year) | Reaching Full Retirement Age in 2025 |
|---|---|---|
| Annual Earnings Limit | $23,400 | $62,160 (for months before birthday) |
| Benefit Withholding Rate | $1 withheld for every $2 earned over limit | $1 withheld for every $3 earned over limit |
| Applies To | All earnings throughout the year | Earnings in the months before reaching FRA |
| Earnings After FRA | N/A | No earnings limit applies |
| Special Monthly Rule | Can be used once in the first year ($1,950/month limit) | Can be used once in the first year ($5,180/month limit) |
How to Report Earnings to the SSA
If you receive benefits and your earnings are higher or lower than you originally estimated, it is vital to contact the SSA promptly to avoid being overpaid or underpaid. The easiest way to report earnings is by calling 1-800-772-1213. Timely reporting helps ensure you receive the correct benefit amount.
Conclusion In conclusion, when you retire at 64, the Social Security rules are not about how many hours can you work if you retire at 64?, but about your total earned income. While there is no hourly cap, you must be mindful of the annual earnings limit until you reach your full retirement age. Working while receiving early benefits offers a careful balancing act between immediate income and potential benefit withholding. The good news is that any withheld benefits are not permanently lost and contribute to a higher monthly payment later on. By understanding these earnings limits and rules, you can make an informed decision that works best for your financial needs and retirement goals. For official details and to use their calculators, visit the Social Security Administration's website: How Work Affects Your Benefits.
