It Depends on Your Age and Income Source
There is no one-size-fits-all answer to how many hours a retired person can work per week. The rules and limits are dependent on what type of retirement benefits you are collecting and your age. For those receiving Social Security benefits, the most significant factor is whether you have reached your full retirement age (FRA). Private and public pension plans may have their own unique restrictions on how many hours you can work for a former employer, a new employer, or within the same industry.
Social Security Rules for Working Retirees
For individuals collecting Social Security, the rules are defined by the Retirement Earnings Test (RET). The RET applies only to those who have not yet reached their full retirement age (FRA) and earn more than a certain annual limit from employment or self-employment.
Working Before Full Retirement Age
For 2025, if you are younger than your FRA for the entire year, the annual earnings limit is $23,400. If your earnings exceed this amount, the Social Security Administration (SSA) will deduct $1 from your benefits for every $2 you earn over the limit. Once you reach your FRA, your benefits are no longer reduced, no matter how much you earn.
Working in the Year You Reach Full Retirement Age
The rules are different and more generous for the calendar year in which you will reach your FRA. For 2025, the earnings limit is $62,160, and it applies only to earnings in the months before you reach your FRA. In this case, the SSA will deduct $1 from your benefits for every $3 you earn above the limit. Starting with the month you reach your FRA, the earnings test no longer applies.
Don't Panic About Lost Benefits
One of the most important things to remember is that any benefits withheld due to the earnings test are not permanently lost. When you reach your FRA, the SSA will recalculate your benefit amount to credit you for the months benefits were withheld. This results in a higher monthly payment for the rest of your life, making up for the earlier reduction.
Working Unlimited Hours After Full Retirement Age
Once you reach your FRA, there is no longer a limit on how much you can earn from work while collecting your full Social Security benefits. This means you can work as many hours per week as you choose without a reduction in your monthly payments. In fact, continuing to work past your FRA can actually increase your Social Security benefit. The SSA automatically reviews the records of all beneficiaries who work each year. If your latest year of earnings is one of your highest-earning years (of the 35 used to calculate your benefit), your monthly payment will be adjusted upward.
How Different Pension Plans Handle Working Hours
Rules surrounding work after retirement can be much more complex for pension recipients, as they vary significantly depending on the plan. Public sector pensions, in particular, often have explicit hourly limitations.
Public Sector Pensions
Many state and local government pensions place strict limits on the hours and/or income retired employees can earn, especially if they return to work for a public employer.
- Massachusetts: As of 2021, public retirees may work up to 1,200 hours in the public sector per calendar year. Exceeding this limit can result in penalties or a suspension of benefits.
- New Hampshire: For some retirees working for a participating employer after 2019, a limit of 1,352 hours per calendar year applies. This rule does not affect work for non-participating employers.
- Oregon (PERS): From 2020 through 2034, most retirees can work unlimited hours for a PERS-participating employer. However, restrictions may apply to early retirees or those also receiving Social Security before FRA.
Private and Union Pensions
Some private company and union pension plans may impose their own restrictions, especially if you return to work for the same employer or in the same industry. For instance, some plans use an "hours test," and exceeding the limit could lead to a suspension of your pension payments. It is critical to check your specific plan's rules before returning to work.
Social Security vs. Pension Rules Comparison
| Aspect | Before Full Retirement Age (FRA) | At or After Full Retirement Age (FRA) |
|---|---|---|
| Social Security Hours | No specific weekly hour limit, but earnings may affect benefits. | Unlimited hours can be worked without affecting benefits. |
| Social Security Earnings | Deductions based on annual earnings limit ($23,400 in 2025). | No annual earnings limit; all earnings are kept. |
| Social Security Benefit | Benefits may be temporarily reduced; withheld amounts are restored later. | Full benefits received regardless of earnings; may increase with higher earnings. |
| Pension (General) | Rules vary by plan; check specific limits on hours or earnings. | Rules vary; many plans have no restrictions after a certain age or years retired, but some may still apply. |
Beyond Hours: Other Financial Considerations
Working in retirement involves more than just hour limits. Your extra income can affect your overall tax situation. It is also important to consider how additional earnings might impact Medicare premiums. If your modified adjusted gross income surpasses certain thresholds, you may be subject to the Income-Related Monthly Adjustment Amount (IRMAA), which increases your Medicare Part B and Part D premiums. Before deciding on a work plan, retirees should evaluate their combined income to minimize tax burdens and premium increases.
Conclusion
While there is no blanket restriction on how many hours a retired person can work per week, the key takeaway is that the rules change dramatically depending on your age and the specific benefits you are receiving. Before reaching your full retirement age, the Social Security Administration's earnings test places a cap on how much you can earn before your benefits are temporarily reduced. For those receiving a pension, the rules are entirely dependent on your plan's specific terms, with some public sector jobs imposing strict hourly limits. Understanding these factors and proactively planning is essential to maximizing your retirement income and ensuring financial peace of mind. For more on planning for your later years, the U.S. Department of Labor offers a comprehensive guide.
