Should You Keep Working After Hitting Full Retirement Age? Here's What Changes Your Social Security Payout

Full retirement age is 67 if you were born in 1960+, but you can claim as early as 62 or delay until 70. The catch? Working after full retirement age won’t automatically boost your benefits—it depends on your earnings.

When Extra Work Actually Increases Your Check

Keep paying Social Security taxes while working? You’re building more benefit credits. BUT—here’s the kicker: SSA only counts your top 35 years of earnings. If you’re working in year 36+ and earning less than those top years, your benefit stays flat. So grinding 68-70 on a part-time gig? Probably won’t move the needle unless it’s serious income.

The Earnings Penalty (If You File Early)

Claim before full retirement age AND work? SSA claws back $1 for every $2 you earn over $23,400 (2025 numbers). That drops to $1 per $3 once you hit full retirement age—then the penalty vanishes entirely. Good news: those reductions are temporary. Your monthly check gets bumped up later to make up for it.

The Tax Trap: High Earners Watch Out

This is where it gets ugly. Earn too much + claim Social Security = up to 85% of your benefits become taxable income.

Single filer thresholds:

• Combined income $25k-$34k → up to 50% taxed
• Above $34k → up to 85% taxed

Married filing jointly:

• $32k-$44k → up to 50% taxed
• Above $44k → up to 85% taxed

The real talk: You might earn more on paper but lose it to taxes. Run the math before you decide to keep grinding.