Yes, working while receiving Social Security benefits before reaching full retirement age can cause some of your monthly payments to be withheld if your earnings exceed an annual limit.
The Social Security Administration has a retirement earnings test that applies to beneficiaries under their full retirement age. For 2024, if you are under full retirement age, the first $22,320 you earn will not affect your benefits. For every $2 earned above that amount, $1 will be withheld from your benefits. This withholding stops once you reach full retirement age, and your benefit amount will be recalculated to account for the withheld payments.
Benefit amounts and earnings limits are subject to change, and individual circumstances may vary.
What if my earnings fluctuate during the year?
If your earnings fluctuate, Social Security typically applies the earnings test on a monthly basis in the first year you receive benefits and are below full retirement age. Once you reach full retirement age, the limit no longer applies.