Understanding How much money can you make after age 66 on Social Security?

According to the Social Security Administration, your full retirement age depends on your birth year, but for those who have reached it, working doesn't affect benefits. This directly addresses the question of how much money can you make after age 66 on Social Security and reveals a key detail many retirees are unaware of.

Quick Summary

Once you have reached your full retirement age, which is 66 for many retirees, there is no limit on the amount of income you can earn from work while receiving your full Social Security benefits. The previous earnings test restrictions are lifted, providing significant financial flexibility for those continuing to work.

Key Points

• No Earnings Limit After FRA: For individuals at or above their full retirement age (FRA), there is no cap on how much they can earn from a job or self-employment without impacting Social Security benefits.

• FRA Varies by Birth Year: Full retirement age is not a single number; it is 66 for those born between 1943-1954 and rises incrementally to 67 for those born in 1960 or later.

• Benefits Can Increase: Continuing to work after FRA can increase your monthly benefit, as the SSA automatically recalculates your benefit to include any new higher-earning years.

• Only Earned Income Counts: The earnings test, which only applies before FRA, only considers wages and net self-employment income, not investment or pension income.

• Withheld Benefits Are Restored: If benefits were withheld before FRA due to the earnings test, your monthly benefit is permanently increased at FRA to account for the lost payments.

• Tax Implications: High combined income from work and benefits can trigger federal income taxes on a portion of your Social Security payments.

Unlimited Earnings: The Simple Answer for Full Retirees

For individuals who have reached their full retirement age (FRA), the Social Security Administration has a straightforward rule: there is no limit on how much money you can earn from work. Unlike those who claim benefits before their FRA, your monthly payments will not be reduced or withheld, regardless of how high your earnings are. This offers substantial freedom for seniors who wish to remain in the workforce, either full-time or part-time, to supplement their retirement income.

What is My Full Retirement Age?

Your exact FRA depends on the year you were born. For individuals born between 1943 and 1954, the FRA is 66. This age gradually increases for subsequent birth years, reaching 67 for anyone born in 1960 or later. Knowing your precise FRA is the first step in understanding when the earnings limit is no longer a factor in your retirement planning.

How Continuing to Work Can Increase Your Benefits

Beyond the freedom from earnings limits, continuing to work after reaching full retirement age can actually increase your Social Security benefit amount. The SSA calculates your benefits based on your 35 highest-earning years. If you work in a year after your FRA and your earnings exceed one of the 35 years used in the initial calculation, the SSA automatically recalculates your benefit. This can result in a permanent increase to your monthly payments, starting the following year. This makes continued employment not just a way to earn extra income, but a tool for maximizing your lifetime Social Security benefit.

The Earnings Test: A Different Story Before FRA

For those who haven't yet reached their FRA, the rules are very different. The Social Security Earnings Test applies, temporarily reducing benefits if you earn over a specific limit. It's crucial to understand these distinctions, particularly if you are close to your full retirement age.

Here is how the earnings test works for those who have not yet reached their full retirement age:

• Before the year you reach FRA: The SSA withholds $1 in benefits for every $2 you earn over the annual limit (in 2025, that limit is $23,400).
• In the year you reach FRA: The earnings limit is significantly higher ($62,160 in 2025). The SSA withholds $1 in benefits for every $3 you earn over this limit, but only for earnings in the months leading up to your birthday month. The earnings test ceases entirely in the month you reach your FRA.

What Income Counts Towards the Earnings Test?

It's important to know which types of income are subject to the earnings test and which are not. The test only applies to what the SSA calls 'earned income.'

• Included:

  • Wages from employment
  • Net earnings from self-employment

• Not Included:

  • Investment income (e.g., stocks, bonds)
  • Pensions
  • Annuities
  • Capital gains
  • Other government or military retirement benefits

Comparison: Working Before vs. After Full Retirement Age

Feature	Working Before Full Retirement Age	Working After Full Retirement Age
Earnings Limit?	Yes, annual limits apply.	No, no earnings limit.
Benefit Reduction?	Benefits are reduced or withheld if earnings exceed the limit.	No benefit reduction, regardless of earnings.
Recalculation Benefit?	Withheld benefits are restored through a recalculation at FRA, increasing future payments.	Higher earnings may replace lower-earning years, increasing monthly benefits.
Income Types Counted?	Wages and net self-employment earnings only.	N/A (no limit).

Strategic Considerations for Working Seniors

For those past or approaching their FRA, the unlimited earning potential opens up several strategic options. You might choose to stay in your current role, start a new venture, or pursue a long-held career interest. For financial advisors' perspectives, resources like this guide from the Bipartisan Policy Center offer deeper insights: https://bipartisanpolicy.org/explainer/retirement-earnings-test/.

1. Work with a financial planner. They can help you understand the tax implications of your combined Social Security and earned income, potentially helping you minimize your tax liability.
2. Evaluate your earning history. If you have gaps in your work record or years with low earnings, working a few more years at a higher salary can significantly boost your final benefit amount.
3. Consider how working affects your claiming age. If you plan to work indefinitely, you might consider delaying your Social Security benefits past your FRA, as your monthly payment increases by a certain percentage for every year you delay, up to age 70.

Conclusion: Maximize Your Retirement Income

The knowledge that you can earn unlimited income from work after reaching your full retirement age is a powerful asset for retirement planning. It provides the freedom to work as much or as little as you desire without fear of having your Social Security benefits reduced. By strategically combining your work income with your retirement benefits, and considering the potential for higher future payouts, you can achieve a more comfortable and financially secure retirement.

Frequently Asked Questions

What is considered 'earned income' by the Social Security Administration?

For the purpose of the earnings test, earned income includes wages from a job and net earnings from self-employment. It does not include pensions, annuities, investment income, or other government benefits.

Do I have to pay Social Security taxes on my earnings after age 66?

Yes. Even after reaching full retirement age and receiving benefits, you are still required to pay Social Security and Medicare taxes on your earnings from work or self-employment.

If I continue working, will my Social Security benefits be taxed?

If your combined income—which includes your adjusted gross income, non-taxable interest, and half of your Social Security benefits—is high enough, a portion of your Social Security benefits may be subject to federal income tax.

Can I delay my Social Security claim past my full retirement age?

Yes. By delaying your claim past your full retirement age (up to age 70), you can earn delayed retirement credits that result in a larger monthly payment for the rest of your life.

What happens if I already had some benefits withheld before age 66 due to high earnings?

Any benefits that were withheld from you before you reached full retirement age will be credited back to you in the form of a permanent increase in your monthly benefit amount once you reach your FRA.

Does the earnings limit apply to my spouse's benefits on my record?

If you are receiving spousal benefits and you are under your full retirement age, your benefits may also be affected by the earnings test. However, once you reach your own full retirement age, the limit no longer applies.

How can I check my earnings record with the Social Security Administration?

You can view your full earnings history and get personalized benefit estimates by creating or logging into a 'my Social Security' account on the SSA website. This allows you to check for accuracy and track your highest-earning years.