If you’re juggling a job and a Social Security check, 2025 brings fresh income limits that could nibble away at your benefits. Here’s the fine print—plus a few ways to stay ahead.
For millions of beneficiaries who haven’t yet hit full retirement age (FRA), the Social Security earnings test decides how much of each monthly payment lands in their bank account. Depending on your birth year and wages, the agency may temporarily hold back part of the money. Sound unfair? Let’s see how the math works.
How the 2025 Social Security earnings test may trim your check
In 2025 the test places recipients in three groups, each with its own threshold. Go over the line and the government withholds $1 for every $2 or $3 earned above it.
| 2025 category | Annual earnings you can keep before benefits are withheld | Monthly equivalent | Withholding rate |
|---|---|---|---|
| Reach FRA after 2025 | $23,400 | $1,950 | $1 withheld for every $2 above limit |
| Reach FRA during 2025 | $62,160 (earnings counted only up to month before FRA) | $5,180 | $1 withheld for every $3 above limit |
| Already at FRA | No limit | N/A | No withholding |
Remember, withheld money isn’t lost forever. When you finally reach FRA, the Social Security Administration recalculates your benefit so those held‑back dollars flow back into future payments.
Strategies older workers can use to keep more of their benefits
Need a straightforward game plan? Try these ideas:
- Time that bonus or overtime. If you’re close to the yearly cap, ask whether extra pay can be deferred to the month after you hit FRA.
- Shift to tax‑favored income. Contributions to a 401(k) or health savings account reduce “earnings” counted by the test.
- Stagger your start date. Claim benefits in the year you retire, not the year you earn the most, to skirt unnecessary withholding.
- Consider delaying altogether. Waiting even a few months can bump up your future check and dodge the earnings test entirely.
However, every household budget is different. Do you rely on that check to cover essentials, or is the extra income just nice to have? Crunch the numbers, talk with a trusted adviser, and decide whether claiming now—or waiting—fits your goals.
Working while collecting Social Security is perfectly legal, but 2025’s thresholds demand attention. Keep your earnings under the limit, or plan for a temporary haircut and a later payback. Staying informed today can protect tomorrow’s retirement income.