Social Security Income Limits After Full Retirement Age

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on January 18, 2024

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What Are Social Security Income Limits After Full Retirement Age?

Once you reach Full Retirement Age (FRA), there is no limit to how much you can earn while collecting Social Security benefits.

For those who are yet to reach full retirement age and have annual earnings exceeding the set yearly limit, their benefit amount might be reduced.

For the year 2024, the earnings limit for individuals who have not reached full retirement age stands at $22,320. If your earnings surpass this limit, your benefit payments will be reduced by $1 for every $2 that you earn above this amount.

The situation changes slightly during the year you attain full retirement age. In this case, the earnings limit is set at $59,520. If your earnings exceed this limit, for every $3 you earn above it, $1 will be deducted from your benefit payments.

Factors Influencing Social Security Income Limits Post FRA

Continued Employment Income

After reaching Full Retirement Age, a beneficiary can continue to work and earn income without affecting their Social Security benefits. The more a person earns through work, the greater their total income will be, but their Social Security benefits remain unaffected.

Pension and Other Retirement Incomes

Other forms of retirement income, such as pensions or annuities, do not affect Social Security benefits. Regardless of the amount of pension or other retirement income a person receives, their Social Security benefits remain the same.

Investments, Dividends, and Interest Income

Income from investments, dividends, or interest is not considered earnings for Social Security purposes. Therefore, this income does not affect the amount of Social Security benefits a person receives, irrespective of the Full Retirement Age.

Spousal Benefits Considerations

Spousal benefits, which provide income to a person based on their spouse's earnings record, are not affected by the person's own earnings after they reach Full Retirement Age.

However, these benefits may be reduced if the person claiming them earns above the limit prior to reaching their own Full Retirement Age.

Factors Influencing Social Security Benefits Post-Full Retirement Age

Strategies to Maximize Social Security Benefits Post-Full Retirement Age

Benefits of Delaying Social Security Benefits

There is a strategy of waiting to claim Social Security benefits until after the Full Retirement Age, even up to age 70.

By doing so, beneficiaries can increase their benefits by a certain percentage for each year they delay claiming beyond their FRA, resulting in a higher monthly benefit when they do start claiming.

Role of Continued Employment

Continuing to work after reaching Full Retirement Age can provide additional income without affecting Social Security benefits. It also provides the opportunity to increase future benefits if current earnings are higher than in some earlier years used to calculate the benefit amount.

Considerations for Tax Planning

Understanding the tax implications of Social Security benefits can help beneficiaries optimize their overall income in retirement.

By effectively managing other income sources and considering the timing of withdrawals from retirement accounts, beneficiaries can potentially minimize the portion of their benefits subject to tax.

Strategies to Maximize Social Security Benefits Post-Full Retirement Age

How Income Limits Affect Medicare Premiums

Explanation of Medicare Premiums

Medicare premiums are the monthly costs paid by beneficiaries for their Medicare health insurance coverage. These costs vary based on the specific plan and coverage options a beneficiary chooses.

Income Related Monthly Adjustment Amount (IRMAA)

The Income Related Monthly Adjustment Amount (IRMAA) is an extra charge applied to the Medicare Part B and D premiums for beneficiaries with higher income levels.

The Social Security Administration uses the most recent federal tax return to determine whether a beneficiary must pay IRMAA.

Potential Impact of Social Security Income Limits on Medicare Premiums

While Social Security income limits don't directly affect Medicare premiums, a beneficiary's total income can affect the amount they pay for Medicare Part B and D coverage due to IRMAA.

This includes income from work, pensions, and other sources, as well as Social Security benefits.


Once you reach Full Retirement Age, there is no earnings limit that would reduce your Social Security benefits.

While continued employment, pensions, and other incomes like investments and dividends will not impact your benefits, exceeding the income limit before reaching FRA may lead to reductions.

Strategies like delaying your Social Security claims past FRA, working beyond FRA, and effective tax planning can help optimize your retirement income.

Spousal benefits also remain unaffected post-FRA, although they may be reduced if the income limit is surpassed before reaching FRA.

It's important to note that while Social Security income doesn't directly impact Medicare premiums, your total income, including Social Security, can influence the amount due to the Income Related Monthly Adjustment Amount.

In essence, understanding these nuances can ensure you maximize your benefits and navigate your retirement income effectively.

Social Security Income Limits After Full Retirement Age FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.

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