Working while on Social Security can lead to benefit reductions, but can be restored over time.

From Yahoo Finance: 2025-05-31 04:54:00

Many retirees are choosing to work part-time or return to full-time work after retirement, impacting Social Security benefits. Working after claiming benefits can lead to reductions in monthly payments, depending on your full retirement age. However, benefits can be recovered over time if income exceeds thresholds.

When working while on Social Security, exceeding income thresholds can lead to reductions in benefits. For those not at full retirement age, earning above $23,400 in 2025 can trigger benefit reductions. However, benefits are gradually restored over time, offsetting initial income losses.

Working while on Social Security can result in withholding of entire benefits, but credits are given later for any early filing penalties incurred. While future benefits increase slightly to make up for lost income, it can take time for payments to fully recover, causing financial strain in the short term.

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Read more: If You’re Collecting Social Security Early, Don’t Get a Job Unless You Read This First