How Much Can You Actually Earn in Semi-Retirement Without Losing Social Security Benefits?
Some retirees don’t envision walking away from a full-time job for good. Instead, they want to pick up a part-time job or side gig. While bringing in extra cash may allow for more traveling or hobbies, it’s important to consider what this income could mean for your Social Security benefits.
It’s possible to earn Social Security while working part-time, but it’s crucial to understand the rules. Here’s what you should know.
Must Read
What to know about the Social Security earning limit
You can receive Social Security while working, but there is a limit to how much you can earn while receiving full benefits. The earnings limit only applies to people who claim benefits before reaching full retirement age, which is age 66 or 67.
If you are younger than full retirement age, Social Security withholds $1 for every $2 earned above an annual limit, which is $24,480 in 2026. The administration gets a bit more lenient in the year you reach full retirement age, with $1 being withheld for every $3 earned above a different limit ($65,160 in 2026). That $1 for $3 setup only applies in the months leading up to when you reach full retirement age.
Any benefits that are withheld because you are below full retirement age are not permanently lost and will be distributed in future payouts.
Where People Are Buying Gold Right Now
How to prepare for taking out Social Security and working part-time
The longer you can wait to take out Social Security, the higher your benefits may be — and working a part-time job can mean receiving enough income to allow you to cover expenses and delay tapping your benefits. When you reach full retirement age, you can receive full benefits.
The Social Security Administration has calculators to help you plan. You can estimate your annual earnings and see how your benefit will change based on when you receive it. You can also see how withheld benefits will impact future payouts.
If you claim Social Security and regret it because you’ve locked in lower benefits, you may be able to walk that decision back. If you have had Social Security for less than one year, you can pay back all of the benefits you received to defer your benefits.
Semi-retirement can be a way to generate enough income to fund your dream retirement, as well as a way to delay claiming Social Security to lock in a higher benefit. Make the most of your financial tools in your toolbox to maximize your benefits and make your money last.