How Earnings Are Deducted From Benefits
The Social Security Administration permits retirees to work and still receive retirement benefits. However, if earnings exceed a certain threshold, benefits may be reduced. Rules differ for workers who earn income before the year of full retirement age and those who earn income during and after the year of full retirement age.
If before the year of full retirement and earning more than the limit, the social security benefit may be reduced by $1 for every additional $2 earned. For 2024, the limit is $22,320.
In the year the worker reaches full retirement age, the benefit is reduced by $1 for every additional $3 earned. In 2024, the earnings limit for these recipients is $59,520.45
After reaching full retirement age, no deductions are made from benefits, regardless of how much the worker earns.
