Why Working During Retirement Could Hurt You From a Social Security Standpoint

Many seniors pledge never to work again after retirement, but others opt to work. For some, it’s a matter of needing the money. For others, it comes down to not wanting to be bored. 

There are definitely perks to working during retirement, but if you choose to go that route, you should know that it could end up impacting your Social Security benefits — and not for the better.

How a higher retirement income could come back to bite you

If you hold down a job and collect Social Security before reaching full retirement age, your income from that job will be subject to the earnings test, and if it’s too high, you may have some of your Social Security benefits withheld. Once you reach full retirement age, however, that risk disappears. At that point, you can work and earn as much as you’d like without impacting your benefits.

Older person with concerned expression holding document.


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