Yes, you can collect Social Security benefits and work in retirement at the same time. But if you're working and collecting benefits before you've reached full retirement age — which is between ages 66 and 67, depending on the year of your birth — your monthly benefits may be subject to a reduction if your income exceeds a prescribed limit.
However, when you reach full retirement age, your Social Security benefit will be adjusted to give you credit for the withholding that took place due to withholding resulting from income that exceeds the annual Social Security earnings limit. After you reach full retirement age, your benefits also will no longer be subject to any reduction while you're employed, and there's no limit on how much you can earn.
The Social Security Administration uses a formula based on an annual earnings limit and your age to calculate the Social Security benefits you will receive while you're still working. While it's best to discuss your situation with an advisor or accountant, the Social Security website includes a
Social Security Administration calculator for you to model how your earnings could affect your benefit payments.
Will my Social Security benefits be taxed differently if I work?
Working while collecting Social Security can affect your taxable income. Taxes on Social Security retirement benefits are based on what is commonly referred to as your combined income, a figure the IRS calculates by adding up your adjusted gross income, any tax-free interest you may have earned, and 50% of your Social Security benefits, plus certain other adjustments for the year. There are strategies that can
help you minimize taxes on your Social Security benefits, although, these too can change based on your age.
Calculating your combined income