2. If You’re Still Working, Watch Those Earnings
This is the part where I see people get tripped up all the time. You can work while collecting Social Security, but there are limits if you haven’t hit full retirement age yet.
For 2025, the earnings limit if you’re under FRA is $23,400. If you earn more than that, Social Security holds back $1 for every $2 over the limit. So let’s say you bring in $30,000 from a part-time job while on benefits. That’s $6,600 over the limit. Social Security will withhold $3,300 from your checks for the year.
But there’s a softer rule if you’re reaching full retirement age in 2025. In that case, you can make up to $62,160 in the months before your birthday. Anything over, they’ll hold back $1 for every $3. After you hit FRA, though? The sky’s the limit. You can earn as much as you want, and Social Security won’t reduce your checks.
This rule makes sense when you think about it—it’s meant to balance out people who claim benefits earlier but keep working. But if you don’t know about it, it can feel like a nasty surprise when your check suddenly shrinks.
