Core Points - Collecting Social Security benefits does not require individuals to stop working, but earnings can impact the benefits received [1][2] - Understanding the earnings limits is crucial for balancing work and retirement income without unexpected reductions [2] Earnings Limits for 2025 - The earnings limit for individuals under full retirement age (FRA) in 2025 is set at $23,400, an increase from $22,320 in 2024 [3] - For those reaching FRA in 2025, the limit is $62,160 for the year of reaching FRA, up from $59,520 in 2024 [3] Impact of Earnings on Benefits - If earnings exceed the limit while under FRA, benefits will be temporarily reduced at a rate of $1 for every $2 earned over the limit [5][6] - For example, a 63-year-old earning $28,400 would exceed the limit by $5,000, resulting in a $2,500 reduction in benefits for that year [6] Recalculation of Benefits - Once individuals reach FRA, the Social Security Administration will recalculate benefits to account for any previously withheld payments [4][7] - For those turning 67 in September 2025, if they earn $70,160 before reaching FRA, they would lose $2,667 in benefits, equivalent to one month of payments [8] Strategic Considerations - Working while collecting Social Security can be financially beneficial, but planning is necessary to manage potential temporary reductions in benefits if earnings exceed the limits [9]