The Social Security Earnings Test Explained
Working while receiving Social Security benefits is governed by the earnings test [1.2]. This test only applies if you are receiving benefits before you reach your Full Retirement Age (FRA) [1.2]. For anyone born in 1960 or later, your FRA is 67 [1]. If you are 65, you are still subject to these limits [1, 2]. Once you reach your FRA, you can earn any amount of money without a reduction in your Social Security benefits [1, 2].
Earnings Limits Before Your Full Retirement Age
Before your FRA, the Social Security Administration (SSA) applies earnings limits [1, 2]. These limits are adjusted annually.
Based on 2025 figures for those under FRA [1]:
- Under FRA for the entire year: The earnings limit is $23,400. For every $2 earned above this limit, $1 is withheld from benefits [1].
- Reach FRA during the year: A higher limit ($62,160 in 2025) applies for months before your birthday [1]. For every $3 earned above this limit, $1 is withheld [1]. This only applies to earnings before your FRA month [1].
Benefit reductions are temporary [1, 2]. At FRA, the SSA recalculates your benefit, giving credit for withheld benefits, resulting in a higher monthly payment [1, 2].
What Happens When You Reach Your FRA
For those born in 1960 or later, FRA is 67 [1]. Starting the month you reach FRA, the earnings test no longer applies [1, 2]. You can earn unlimited income without benefit reduction [1, 2]. This allows you to receive full benefits and potentially increase future payments through continued work [1].
Calculating Your Full Retirement Age
Your FRA depends on your birth year [1]:
| Year of Birth | Full Retirement Age (FRA) |
|---|---|
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
At 65, those born in 1960 or later are two years away from their FRA [1].
How Your Future Benefits Are Affected
Working while receiving benefits can increase your long-term payments [1, 2].
- Recalculation at FRA: Withheld benefits before FRA result in a permanent monthly benefit increase starting at FRA [1, 2].
- Higher AIME: Benefits are based on your 35 highest-earning years [1]. If earnings at age 65+ are higher than a previous top year, the SSA substitutes the higher income, boosting your monthly benefit [1, 2].
Tax Implications of Working in Retirement
Working in retirement can affect your taxes [1]. If your income exceeds certain thresholds, some benefits may be taxed [1]. "Combined income" includes adjusted gross income, nontaxable interest, and half of Social Security benefits [1].
- Single filer: 50% of benefits may be taxed if combined income is $25,000–$34,000 [1]. Up to 85% may be taxed if combined income exceeds $34,000 [1].
- Joint filer: 50% of benefits may be taxed if combined income is $32,000–$44,000 [1]. Up to 85% may be taxed if combined income exceeds $44,000 [1].
Consult a financial advisor or tax professional for personalized advice [1].
Maximize Your Earnings and Benefits
Strategies for working at age 65:
- Work with the Earnings Limit: If under FRA, manage earnings to stay below the limit to receive full benefits [1].
- Consider the Special Monthly Rule: In the first year of retirement, you may receive a full check for months you earn below a monthly limit, even if yearly earnings exceed the limit [1].
- Delay Benefits to Age 70: Delaying Social Security until age 70 significantly increases your monthly benefit (about 8% per year past FRA) [1].
- Use the SSA's Calculators: The SSA offers online tools to estimate how earnings affect benefits [1]. You can access these at the official website [1].
Conclusion: The Bottom Line for Working at 65
How much you can make at 65 and still work depends on your birth year and FRA [1, 2]. For most at 65, earnings limits apply, but these temporary reductions lead to higher monthly benefits later [1, 2]. Understanding the earnings test, your FRA, and tax implications allows for informed decisions to maximize retirement income [1, 2]. Continued work can provide financial security and increase lifetime benefits [1, 2]. For more details, visit the official Social Security website [1].
