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If you’re a qualified American, you’re entitled to receive your hard-earned Social Security benefits in retirement. However, you may find yourself in a situation where your Social Security benefits are smaller than expected because you’ve earned too much money while receiving early retirement benefits.
This is a common scenario for those claiming Social Security before reaching their full retirement age.
“People frequently say they’re getting their Social Security checks “taken away.” This is a misnomer, as it’s often not being taken away but rather withheld for distribution at a later date,” says Chris Diodato, a certified financial planner and founder of WELLth Financial Planning.
Key Takeaways
- If you are younger than the full retirement age and receive Social Security, there is an earnings cap on how much you can make. For 2025, the cap is $23,400.
- If you exceed this cap, some of your Social Security benefits will be withheld, but you get those benefits back once you reach full retirement age.
- If you receive Social Security disability benefits, but you make too much income, or your health condition improves, you can lose those benefits.
How Your Earnings Affect Social Security Benefits
Let’s look at what happens if you received your Social Security benefits early and earned above the earnings cap, which was $22,320 for 2024 and $23,400 for 2025.
Diodato explains that the Social Security Administration (SSA) caps earned income, excluding interest, dividends, and capital gains, for the over 60% of people who take Social Security before full retirement age.
“Above these caps, the SSA will withhold between 33% – 50% of your Social Security benefits. This could translate to fewer or smaller checks, which can cause hardship,” Diodato says.
However, the good news is that these benefits are not permanently lost. When you reach full retirement age, the SSA recalculates your benefits to account for the withheld amounts.
“In other words, if you do earn above $22,320 (the earnings cap for 2024 for an early pension recipient) and have benefits withheld, those benefits will be tacked onto your monthly checks at full retirement age and onward,” Diodato says.
No Earnings Cap When You Reach Full Retirement Age
The earnings cap no longer applies once you reach your full retirement age. The full retirement age is 66 years and two months for people born in 1955, and it gradually increases to 67 for those born in 1960 or later.
“Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits no matter how much you earn,” according to the Social Security Administration.
Remarriage Can Make You Lose Social Security Benefits
In addition to income limits, there are other ways you can lose Social Security benefits. For example, if you are widowed or divorced and receiving survivor benefits, remarrying before age 60 will make you ineligible for those survivor benefits.
“Remarrying before age 60 makes one ineligible for survivor benefits in the event of a deceased spouse,” Diodato says. “Before tying the knot, it’s good practice to schedule a call with your local Social Security office.”
You’re convicted of a crime and sentenced to a prison term of more than 30 consecutive days, the Social Security administration will pause your benefits. But your spouse or children will continue receiving benefits if they’re eligible.
When SSDI and SSI Benefits Can Be Paused
If you are receiving Social Security Disability Insurance (SSDI) benefits, but then you return to work and earn above a certain limit that the government qualifies as “substantial gainful activity” you can lose your benefits. If you’re blind, that income limit was $2,590 per month in 2024 and is $2,700 in 2025. If you receive benefits for other disabilities that limit was $1,550 in 2024 and is $1,620 in 2025.
Even if you don’t return to work, the SSA may determine you’re no longer eligible if your medical condition improves. In this case, your benefits may cease after a couple of months.
Social Security Income (SSI) payments are designed for people who have little to no income. So if you earn too much you can lose your benefits. In 2024, that annual income limit was $11,321.49 for an individual. In 2025, that goes up to $11,604.53. That’s $967 per month.
The Bottom Line
Some of your benefits will be withheld if you claim Social Security benefits early and exceed the earnings cap. However, this is not a permanent loss. Once you reach full retirement age, those benefits will be added to your monthly payments. Additionally, be cautious about remarriage if you’re receiving survivor benefits, as it could impact your eligibility.
