(Courtesy of Medicare Done) Many people want or need to keep working after starting Social Security, but how does that affect your benefits? The answer depends on your age and how much you earn.

If you claim Social Security before your full retirement age (FRA) and continue working, your benefits may be temporarily reduced. For those born in or after 1960, full retirement age is 67. In 2025, for example, earning more than $23,400 before reaching FRA will result in $1 withheld for every $2 you earn over the limit. For the year turning FRA earning more than $62,160 will result in $1 withheld for every $3 you earn over the limit, known as the Retirement Earnings Test.

Once you reach FRA, the earnings limit disappears. You can work as much as you want without reducing your Social Security payments. Even better, Social Security recalculates your benefits to account for months when payments were withheld, so you don’t lose out in the long term.

If you’re older than FRA, working may still impact your tax situation. Depending on your total income, up to 85% of your Social Security benefits could be taxable.

The key is to balance Social Security benefits, income and taxes to maximize retirement. Every situation is different, so it’s important to have a clear strategy.

We can help you navigate these decisions. Schedule your free Social Security consultation with Yeshaya Jeremias RSSA at 248-919-8193 or email [email protected] to ensure you’re maximizing your benefits while working. This is a bimonthly series featured in the Health and Business editions focusing on Social Security planning.