Ask the Experts: Receiving Social Security While Still Working

—Illustration by Mark Zingarelli

Q. When I turn 66, will I be penalized if I collect Social Security but still work?

A. Once you reach full retirement age, there’s no penalty, no matter how much you earn. This is how the earnings limit works:

If you are receiving Social Security benefits between age 62 and full retirement age, Social Security will withhold $1 in benefits for every $2 you earn above a given limit ($14,160 in 2009). But Social Security will use a different formula in the year you reach full retirement age. In that year, Social Security will withhold $1 for every $3 you earn above the limit ($37,680 in 2009); the penalty ends in the month you reach full retirement age. After that, you can earn as much as you want without penalty. For more information, see “How Work Affects Your Benefits.”

Source: Stan Hinden