Can You Work and Collect Social Security Retirement Benefits?

If you are receiving Social Security Retirement benefits and have reached full retirement age (FRA), you can work and collect your Social Security benefits without any reduction in your payments. Full retirement age varies depending on the year you were born, but it typically falls between 66 and 67 years old.

However, if you start collecting Social Security before reaching FRA and continue to work, your benefits may be reduced if you earn above a certain income threshold. The SSA uses a formula to determine how much of your benefits will be withheld based on your earnings.

• Before FRA: If you are under full retirement age and earn more than $21,240 (in 2023), $1 for every $2 you earn over that amount will be withheld from your benefits.
• Year You Reach FRA: If you reach FRA during the year, the earnings limit increases to $56,520 (in 2023), and the SSA will withhold $1 for every $3 you earn over that amount until the month you reach FRA.
• After FRA: Once you reach full retirement age, you can earn any amount without any reduction in your benefits.

Can You Work and Collect Social Security Disability Benefits (SSDI)?

If you are receiving Social Security Disability Insurance (SSDI) benefits, you can work, but there are limits on how much you can earn without affecting your benefits.

The SSA has a Substantial Gainful Activity (SGA) limit for individuals receiving SSDI. In 2023, the SGA limit is $1,470 per month for non-blind individuals and $2,460 per month for blind individuals. If you earn more than the SGA limit, the SSA may consider you to be engaged in “substantial gainful activity,” which means you may no longer be eligible for disability benefits.

However, there are some work incentives that allow you to test your ability to work without losing your SSDI benefits immediately:

• Trial Work Period (TWP): If you’re on SSDI, you can work and still receive full benefits for up to 9 months (not necessarily consecutive). During the TWP, you can earn more than the SGA limit without losing your benefits. In 2023, you must earn at least $1,050 per month to qualify for a TWP month.
• Extended Period of Eligibility (EPE): After your Trial Work Period ends, you enter the EPE. During this period, you can continue to receive SSDI benefits for months where your earnings are below the SGA limit. The EPE lasts for 36 months after the TWP.

Can You Work and Collect Supplemental Security Income (SSI)?

If you are receiving Supplemental Security Income (SSI), the rules for working and collecting benefits are different from SSDI. SSI is a needs-based program, meaning it’s dependent on your income and resources. If you earn more than a certain amount, your SSI payments may be reduced or stopped.

• Income Limits: In 2023, the federal SSI income limit is $914 per month for an individual and $1,371 per month for a couple. This includes wages, and if you earn more than this amount, your benefits will decrease.
• Exclusion of Some Income: The SSA does not count all income toward the limit. For example, the first $20 of unearned income and the first $65 of earned income each month are excluded from your SSI calculation.
• Work Incentives: SSI has a PASS (Plan to Achieve Self-Support) program that allows you to set aside income and resources for work-related expenses that could help you become self-sufficient. There are also other work incentives that may help you keep more of your earnings while receiving benefits.

Work Incentives for People Receiving Social Security Benefits

For both SSDI and SSI recipients, there are work incentives that allow you to test your ability to work without losing benefits immediately. These include:

• Ticket to Work Program: This program helps people who want to return to work and maintain their disability benefits. It provides vocational rehabilitation, training, and other services to help you find employment.
• Impairment-Related Work Expenses (IRWE): If you have additional work-related expenses due to your disability (such as medical devices or transportation), you may be able to deduct these from your earnings, which can help you stay below the earnings limit and continue receiving benefits.
• Trial Work Period (TWP): As mentioned earlier, the TWP allows you to work and earn above the SGA limit for up to 9 months without losing SSDI benefits.

Reporting Your Work Activity to the SSA

If you plan to work while receiving Social Security benefits, it’s important to report your work activity to the SSA. This will ensure that the SSA has accurate records of your income and can determine if your benefits should be adjusted based on your earnings.

You can report your work activity by:

• Calling the SSA at 1-800-772-1213.
• Reporting online through your SSA online account.
• Visiting your local SSA office.

Failing to report your work activity could result in overpayments, which you will be required to repay.