Part-Time Work and SSI: Tips to Maximize Your Monthly Benefits

Having a part-time job after retirement can give you extra money and a sense of routine and purpose.

And for people who depend on Social Security, it’s important to know how part-time work can affect the monthly payments they get. What it means for you depends on your age, how much money you make, and the type of Social Security help you get.

If you’re born in 1960 or later, your full retirement age (FRA) is 67. After that age, no matter how much money you make, your Social Security retirement payments will not be cut.

You can get a part-time job, a full-time job, or even start your own business and still get cash from Social Security every month.

But if you start getting benefits before your FRA, the money you earn at work might temporarily lower the amount of money you get each month. That cut is based on how much you make and whether you hit FRA in the same year.

How different types of pay affect Social Security and SSI

Social Security (SSA) will take away $1 from your payments for every $2 you earn over $23,400 if you are under FRA and work in 2025. The rules change a little when you hit the year of your FRA.

“In the year you reach FRA, the limit increases to $62,160, and the deduction is $1 for every $3 earned above this threshold, but only for earnings before the month you reach FRA,” ssa.gov says.

It is important to know that these cuts will not last forever. When you reach full retirement age, the SSA changes your benefit amount to account for the months when your benefits were cut or held back because you earned too much.

If you get Supplemental Security Income (SSI), the calculation is stricter because SSI is a needs-based benefit for people who don’t have a lot of money or means.

People who get SSI need to be careful because even part-time work can affect their payouts. There may also be state-specific add-ons or restrictions that apply depending on where you live.

There are a few different ways to work part-time and get the most out of your Social Security payments. One of the best things you can do is wait to start collecting Social Security until you’re at least full retirement age.

Keeping track of your earnings is just as important if you’re under FRA. Another important step is to let the SSA know about any changes in your job.